NZD/USD has moved steadily lower since it came into contact with a descending trendline, risk orientated assets are facing several head winds at the moment. These include the Evergrande situation, rumblings of potential ''bubbles'' in stocks and housing and the growing realization that the fed will not continue its unprecedented monetary policy indefinitely. While hawkish developments and rhetoric propelled the $NZD higher it is also the the unwinding of these extremely hawkish expectations that are contributing to the move lower. With all this in mind the NZD/USD is approaching a confluence of horizontal support and a rising trendline which is a parallel taken from the 4th of Aug high to 3rd Sep high, stochastics is oversold. This area may not necessarily cause a reversal as the fundamental picture will determine that, however it should at least cause some consolidation. Depending on how the fundamental picture and various risk factors unfold this will definitely be an interesting area to watch for a potential breakout or reversal.
*Not a recommendation to buy or sell, simply for educational purposes*
*Not a recommendation to buy or sell, simply for educational purposes*