NZD/USD Price Analysis: Challenges 50-HMA support after triangle breakdown
|- NZD/USD spotted a symmetrical triangle breakdown on the 1H chart.
- Hourly RSI pierces through the midline, in the bearish region.
- 50-HMA support offers a reprieve to the NZD bulls.
Having faced rejection just below 0.7000, NZD/USD witnessed a fresh leg down over the last hours amid what looks like a chart-driven drop.
The kiwi charted a symmetrical triangle breakdown on the hourly sticks following a close below the rising trendline (pattern) support at 0.6976.
The hourly Relative Strength Index (RSI) entered the bearish region after cutting through the midline, currently trading at 45.22. This implies that the sellers are likely to retain control in the near-term.
At the time of writing, the spot is testing the 50-hourly moving average (HMA) at 0.6960. Acceptance below the latter could fuel a sharp drop towards the horizontal 100-HMA at 0.6941.
However, if the bulls manage to defend the 50-HMA cushion, a bounce towards the 21-HMA support-turned-resistance at 0.6975 cannot be ruled.
Further up, the multi-month highs of 0.6990 could be challenged en-route 0.7000.
NZD/USD: Hourly chart
NZD/USD: Additional levels
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