NZDUSD faces more negative pressure – Analysis - 20-12-2016

The NZDUSD pair traded with clear negativity yesterday to succeed touching our main waited target at 0.6915, and by taking a deeper look at the chart, we find that the price completed forming bearish pattern, which is the head and shoulders that appear on chart, which hints that the price is facing more negative pressure on the short term and medium term basis, and breaking 0.6915 level will confirm opening the way to extend the pair's losses to reach 0.6780 followed by 0.6614 levels.

Therefore, the bearish trend will be suggested in the upcoming period supported by the negative pressure provided by the EMA50, noting that breaching 0.7049 level will stop the current negative pressure and push the price to return to the main bullish trend again.

Expected trading range for today is between 0.6800 support and 0.7000

Expected trend for today: Bearish