NAB FX Technical Strategy Research maintains its bearish NZD/USD bias noticing that the bearish monthly reversal pattern produced in August 2017 remains the dominant technical factor as it has been confirmed by a LT momentum failure and negative LT momentum shift.
"This leaves little doubt in our minds as to the downward path of NZD/USD on a multi-month basis.
In the near term we target range lows at 0.6820. A weekly close below 0.6818 will break the uptrend structure of the 2015/2017 correction and target eight-year trend support around 0.6550.
The bearish LT structure that has re-established its dominance in the recent months however, justifies a challenge of the 2015 lows below 0.6200 in the year to come," NAB projects.
Source: NAB ResearchOriginal Article
