New Zealand Dollar is leading other major currencies lower today. NZD/USD’s break of 0.7098 support indicates resumption of the decline from 0.7463. The firm break of 55 day EMA, and bearish divergence condition in daily MACD, suggest that 0.7463 is a medium term top. Fall from there is correcting whole up trend form 0.5469.
Near term outlook in NZD/USD will now stays bearish as long as 0.7268 resistance holds. We’re tentatively looking at 38.2% retracement of 0.5469 to 0.7463 at 0.6701 as target of the corrective, which is inside support zone of 0.6589/0.6797.
NZD/JPY also follows lower and it’s now eyeing 76.95 support. Break there will extend the correction from 79.19 lower. Nevertheless, outlook in NZD/JPY is relatively more bullish than NZD/USD. strong support could be seen from 55 day EMA (now at 76.38) to bring rebound and keep the up trend intact. However, sustained break of the EMA will argue that it’s already in correction to whole up trend from 59.49, which could bring deeper fall to 71.66 cluster support.
