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NZD/USD is continuing to depreciate and has formed a Channel Down pattern. The pattern has 66% quality and 100% magnitude in the 368-bar period.
The pattern started when the pair bounced from 0.8069 and after falling below and recovering above 200 day SMA for a few times the pair slowed down at 0.8072 where the pair is currently trading. Long traders, who expect that the pair might be pulled back closer to 200 day SMA, could set the first target at Fibonacci retracement (61.8% of 15th to 23rd of August rise) at 0.8095. If the pair breaches this level next targets could be at 200 day SMA at 0.8106 and daily pivot (R1) at 0.8116.
Technical indicators on aggregate give sell signal for the pair on 4H time horizon suggesting that the pair will continue to depreciate and move towards pattern's support. The SWFX market sentiment is bearish as 52% of traders currently hold short positions on the pair expecting further depreciation of the pair. Short traders should set their targets at daily pivot (S1) at 0.8067, 28th of August low at 0.8058, daily pivot (S2) at 0.8051, Fibonacci retracement (100% of 15th to 23rd of August rise) at 0.8038 and daily pivot (S3) at 0.8019.
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