The New Zealand dollar traded slightly lower in a quiet day of forex trading today. The technical outlook remains lower as long as downtrend resistance remains unbroken. The outlook overall is partly constructive, however, due to Monday’s jump higher above resistance.
At the start of the week, the NZD rallied above resistance at 0.7177 but it wasn’t able to sustain the rally and closed well-below resistance and was lower on the session. Once again today, the NZD attempted to rally but it closed at a relatively unchanged level, generating a doji star pattern.
Though we can’t ignore the bullish breakout, we see the overall move as bearish, especially given the downtrend that has been in place since October.
