- NZD/USD risks falling to 0.64, as the hourly chart is reporting a flag breakdown.
- Supporting the bearish case is the gravestone Doji on the hourly chart.
NZD/USD is currently trading at 0.6443, having hit a session high of 0.6468 earlier today.
The pair could drop to 0.64 in the next few hours, as the corrective bounce from Wednesday’s low of 0.6377 seems to have run out of steam, according to technical charts.
For instance, the hourly chart is reporting a bear flag breakdown, a continuation pattern which usually accelerates the preceding sell-off. The breakdown has opened the doors to a retest of 0.6377.
Supporting the bearish case is the gravestone Doji candle created earlier today and a below-50 reading on the relative strength index.
The outlook will remain bearish as long as the pair is held below 0.6590 (Aug. 6 high).
Hourly chart
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Trend: Bearish
Pivot points
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