NZDUSD Chart Technical Outlook could head south on Fed and RBNZ monetary policy divergence
NZD/USD trades in a corrective falling channel with a broadly bearish bias.
The RBNZ is a dovish central bank versus a non-convincing hawkish stance from the Fed, more clues from today’s speeches of Bullard and Williams.
The pair correlates positively with stocks and could head south on hawkish Fed officials’ comments alongside the uncertainty about China’s economic growth.
It painted an Evening Star Pattern in the daily chart, a reversal candlestick formation.
I expect more downside price action to come.
Resistances: 0.6225, 0.6300
Supports: 0.6140, 0.6080