- NZD/USD prints gains as gold rallies to multi-year highs.
- NZD’s weekly chart shows a bearish reversal pattern.
NZD/USD is currently trading at 0.5955, representing a 0.55% gain on the day.
The Kiwi could rise further against the safe-haven US dollar, as the S&P 500 futures are up 1.23%. Additionally, gold has jumped to 7.5-year highs above $1,755, pointing to dollar weakness.
That said, the outlook will remain bearish, as long as the spot is held below the previous week’s high of 0.6156. This is because the pair fell by 3.34% last week to register its biggest weekly decline since the third week of March. More importantly, the last week’s candle has taken the shape of a big red marubozu candle, which is also engulfing the preceding week’s trading range.
The candlestick pattern indicates the bounce from the March low of 0.5469 has made a top above 0.61 over the past couple of weeks and the bears have regained control.
The bearish reversal would gain credence if the spot drops below 0.5920 this week. That will likely cause more sellers to join the market, leading to a quick decline to levels below 0.58.
Weekly chart
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Trend: Bearish
Technical levels
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