NZDUSD – Break of average confirms Negative bias
14th November 2016
The trend for the bulk of this year has been clearly positive but a double top being formed above 0.7400 has confirmed a peaking of investor demand. A negative break of strength indicators (RSI) below their moving average has been confirmed with a similar move in the spot after last week’s powerful decline.
In addition, the weekly Keltner channel is showing an increasingly negative bias for NZDUSD and we look for the downside to develop with a break below .7034 confirming and exposing sentiment to .6952 and .6892.
Only a weekly close above the 21 week moving average is negates this view although a more positive NZDUSD stance would only be signalled by a similar close in the RSI indicator.
