© Dukascopy Bank SA
NZD/USD is continuing its bearish trend while forming a Channel Down pattern on the 4H chart. The pattern has 65% quality and 90% magnitude in 160-bar period.
The pattern started when pair bounced from 0.808 and after testing resistance levels at 0.823 and 0.764 it has slowed down at 0.75 where the pair is currently trading. The Stochastic and the RSI indicators strongly point at possible bull market outbreak in 1W horizon. Long traders could focus on the resistance level at 0.755. If this level will be breached, next target could be at pattern resistance test level at 0.764.Indicators on the 4H and 1W time horizons on aggregate strongly suggest bear market outbreak. Short traders could focus on the support level at 0.749. If the pair breaches this level, next possible target could be at the lowest level since mid December at 0.745.
© Dukascopy Bank SA