NZD/USD Price Analysis: Hits six-day low, RSI favors deeper decline
- NZD/USD's is sidelined in Asia after Friday's 1% chart.
- The daily chart RSI and candlestick patterns indicate bearish reversal.
NZD/USD is trading largely unchanged on the day near 0.6627, having hit a six-day low of 0.6614 about two hours ago.
The 14-day relative strength index (RSI) has dived out of a six-week-long ascending channel. Indicating a short-term bullish-to-bearish trend change.
A similar message is being echoed by the daily chart candlestick arrangement. The pair fell by over 1% on Friday, nearly engulfing or undoing the preceding day’s bullish hammer. Further, Friday's decline validated buyer exhaustion signaled by the pair’s repeated failure to establish a strong foothold above 0.67 observed in the four days to July 30.
As such, the pair may test support of the trendline rising from March 19 and May 15 lows. At press time, that support is located at 0.6539.
A sustained move above 0.67 is needed to invalidate the immediate bearish case.
Daily chart
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Trend: Bearish