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.

Dhwani Mehta FXStreet

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

NZD/USD

Overview
Today last price	0.6961
Today Daily Change	-0.0016
Today Daily Change %	-0.23
Today daily open	0.6978

Trends
Daily SMA20	0.6807
Daily SMA50	0.6703
Daily SMA100	0.6664
Daily SMA200	0.6423

Levels
Previous Daily High	0.7005
Previous Daily Low	0.6917
Previous Weekly High	0.6952
Previous Weekly Low	0.6841
Previous Monthly High	0.6726
Previous Monthly Low	0.6546
Daily Fibonacci 38.2%	0.6971
Daily Fibonacci 61.8%	0.6951
Daily Pivot Point S1	0.6928
Daily Pivot Point S2	0.6879
Daily Pivot Point S3	0.684
Daily Pivot Point R1	0.7016
Daily Pivot Point R2	0.7055
Daily Pivot Point R3	0.7104

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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