Following the Fed interest rate decision, NZD/USD dipped 110 pips to the nearest support, where action slowed down to a halt during the asian session.
The current support, priced at 0.8520, is actually a crucial level in the current uptrend. Besides being a confirmed price pivot zone where the last swing low in the uptrend ended, the bullish trendline has caught and the 200 simple moving average on 1H timeframe have finally caught up with this level.
Ahead of the US Jobs and Home Sales reports, NZD/USD sellers are already trying to stabilise the price below this support level. A succesfull break here will technically change the trend from bullish to bearish, opening up the way towards 0.8430 area for starters.
Further confirmation would be a re-test of 0.8520 from below, confirming the level as resistance, which suggests a lot more downside is ahead.
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Prepared by Alexandru Z., Chief Technical Analyst at Capital Trust Markets
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