NZD/USD dropped below 0.68 soon before press time and risks falling further toward 0.6756, which is the support of the trendline connecting the Oct. 9 and Jan 3 lows or the lower edge of the ascending triangle pattern.
The pair created a doji candle yesterday – a sign of indecision – as it struggled to cross the upper edge of the triangle. Therefore, the sell-off seen today indicates a transition from the indecision/bullish exhaustion (as doji appeared at key resistance) to bearish market, i.e. a bull-to-bear trend change.
That said, the drop to support at 0.6756 could happen after a minor bounce, as RSIs on both the hourly and 4-hour charts are reporting oversold conditions. As of writing, the NZD/USD pair is trading at 0.6801, having printed a low of 0.6798 a few minutes ago. The Kiwi is being offered across as the RBNZ kept rates unchanged, as expected, but surprised markets by signaling that next rate move could be lower.
Daily chart
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Trend: Bearish
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