Daily Price Action

NZDUSD Bearish Pressure to Intensify Below 0.7200


The key test for NZDUSD that I mentioned on September 23rd just materialized. The 0.7200 area includes lows from August 22nd and July 12th among others and is no doubt an inflection point for the kiwi.

While yesterday’s session failed to close below the key handle, it does appear likely that we’ll see a break this week. Yesterday’s bearish engulfing candle coupled with a strong bullish move by the US dollar leaves the NZDUSD vulnerable to further weakness.

A move lower would likely encounter support at ascending channel support near 0.7050. Of course, the exact price depends on the intensity of the selling pressure should we see the pair close below 0.7200 over the coming sessions.

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