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.
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