NZDUSD double top spells trouble, as the Fibonacci bears return
NZDUSD has moved through the 0.61861 support level today, completing an intraday double top formation. Coming off the back of a period of strength that saw the pair reach a three-week high last Friday, it appears the wider bearish trend could be kicking in once again. Crucially, the fact that price appears to be reversing lower from the 76.4% Fibonacci resistance level (0.6223) looks to continue a theme given that the recent wider peak of 0.62476 also lies just above the 76.43% Fibonacci level.
With price having completed a double top formation, it seems likely that we will move lower from here. As such, bearish positions are favoured unless price pushes up through today's high of 0.6223.
From a fundamental perspective, keep and eye out for PMI figures throughout Europe and the US tomorrow. Wider market risk-off sentiment is key to maintaining this bearish move.
With price having completed a double top formation, it seems likely that we will move lower from here. As such, bearish positions are favoured unless price pushes up through today's high of 0.6223.
From a fundamental perspective, keep and eye out for PMI figures throughout Europe and the US tomorrow. Wider market risk-off sentiment is key to maintaining this bearish move.