FX.co ★ NZD/USD: downside outlook intact

NZD/USD Exhausted Sellers?

The NZD/USD pair dropped within a down channel pattern. Now, it's trading at 0.6143 at the time of writing. Technically, its failure to come back to reach the channel's downside line indicated exhausted sellers.

Now, it stands right below the downtrend line which represents an upside obstacle. Staying near this line may announce an imminent breakout. Technically, the former high of 0.6153 represents an upside obstacle as well.

NZD/USD Trading Conclusion!

Jumping above the downtrend line and above 0.6153 validates an upside reversal. This is seen as a buying signal.