NZDUSD Bearish Pattern Break To 0.6200

Wed 15th February 2023 : Daily Currency Strength Analysis

In Today’s Video we’re looking at Trading Setups in:

• NZDUSD
• GBPUSD (Covered in Video)

NZDUSD Bearish Pattern Break To 0.6200

In today’s forex strength video we identified that the New Zealand Dollar (NZD) is a weak currency, and the United States Dollar (USD) is a strong one.

This means that NZDUSD could trade lower.

US Consumer Price Index (CPI) came in higher than previous giving the USD strength.

Price of NZDUSD recently fell from the key resistance of 0.6500.

Price has been trading between this level and 0.6200 since December 2022.

Today price has broken down out of a bearish flag pattern. 

This could offer traders an opportunity to sell down to support of 0.6200.

Support holds confluence with the daily 200 moving average. 

Day traders may consider watching the lower time frames around 0.6300 for bearish patterns.

Technical Observations

• The NZD is W2 and USD is S2 on the day traders table.
• Price has formed a bearish flag pattern at support of 0.6300.
• Price has broken down out of the pattern.
• A bearish close could see price trade down to 0.6200.
• Daily 200 moving average sits just below this level.