NZD/USD: 2019 Range Breakout Reconfirms M-Term Downtrend; Where To Target? – NAB

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The New Zealand dollar has been on the back foot due to the trade wars. What’s next?

Here is their view, courtesy of eFXdata:

NAB discusses NZD/USD technical outlook and adopts a bearish bias in the near and medium-term. NAB now targets NZD/USD at 0.6435 in 1-.month, and at 0.6250 in 3-months.

“Last week’s close below the previous 2019 range of 0.6575/80 to 0.6939/42 confirms that NZD/USD has returned to its multi-year downtrend. Since late 2016 NZD/USD has trended lower in a perfect parallel downtrend channel. The base of the channel is currently at 0.6250/70 and provides an excellent MT target.

The confirmed break of the previous 2019 range / rectangle has a textbook target at 0.6200/50 and coincides with the base of the channel in time,” NAB notes.

ST, MT and LT momentum confirm a comprehensive negative MT momentum bias and maintain immense downward pressure in the coming weeks to months,” NAB adds.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.