Midday update for NZDUSD 20-12-2018

The AUDUSD pair retests the previously broken neckline of the head and shoulders’ pattern and keeps its stability below it until now, to keep the negative effect of this pattern active, waiting to resume the bearish trend that its next main target located at 0.7020, reminding you that it is important to hold below 0.7140 to continue the expected decline.

Brent oil price resumes its negative trading clearly to press on 55.00 level, reinforcing the expectations of continuing the bearish trend on the intraday and short term basis, which gets continuous support by the EMA50, waiting to visit 49.87 level that represents our next main station, reminding you that the continuation of the expected decline conditions holding below 56.90 and the most important below 58.40.

Crude oil price managed to break the bearish flag’s support line and settles below it now, to activate the negative effect of this pattern, which supports the continuation of our bearish overview efficiently for the rest of the day, which its next target located at 45.46, noting that breaking this level is considered as the key to rally towards 40.00$ barrier on the near term basis, while holding below 48.34 represents key condition to achieve the suggested targets.