NZD/USD – Is the Decline Losing Momentum? (Video)

Craig Erlam, Senior Market Analyst at Oanda speaks to Matt Brown about the NZDUSD and how the Kiwi Dollar has been in a downtrend and notes that despite the completion of the head and shoulders pattern, the pair could still move lower. Recent profit taking and consolidation show a continuation pattern, as seen by a break of the flag. However, Erlam highlights the momentum indicators are not yet showing a new low and are far from showing new lows. If a low is touched, then this will show confirmation and indicate the momentum is behind the bearish move. If new lows aren’t reached in the MACD and Stochastic, there could be upside to the pair. Finally, this could well be the formation of a double bottom forming.

Midday Movers

Oil Gushes Lower Leading Commodity Exodus

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.