Black line- resistance
Blue line- support
NZDUSD is trading around 0.6198. Short-term trend has changed to bearish as price has started making lower lows and lower highs. In a previous analysis we warned traders that after the break above the black resistance neckline, bulls do not want to see price turn back below the black trend line. Previous resistance was now support. Failure to hold above the black trend line would imply that the break out was fake. Traders were warned. Price not only broke back below the black neckline, it also reached the blue upward sloping support trend line. Then a new bearish signal was given. Price broke below the blue upward sloping trend line and stopped the sequence of higher lows. Recent price action confirms the importance of the resistance at 0.63 and that bulls will need to recapture this level in order to regain control of the trend.
