19:24 NZDUSD: Kiwi Remains Above 200DMA
The pair dropped on Wednesday and Thursday, but was consolidating on Friday and luckily for bulls, the pair managed to defend the 200-day moving average. It was trading at around 0.6880 during the London session.
Tuesday’s daily candle looks like a reversal pattern, either an evening star pattern and/or a bearish pinbar. Both are bearish reversal patterns and the price has moved lower since then. The main support is now at the 200-day moving average, which is located near 0.6850 and if the price drops below, the bearish reversal could be confirmed, with the next target probably around 0.6750.
There is also another bullish support at 0.68, where the uptrend line from previous lows is seen.
On the upside, the resistance is now at 0.69 and if broken, the pair might revisit the current cycle highs at 0.6970.
Sentiment seems to remain negative as stocks are dropping again, which might put some bearish pressure on commodity currencies.
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