Today is the seventh consecutive day of declines in NZD/USD.
Even with a better mood in markets today, the pair is down 40 pips to 0.6542. Yesterday it was largely a broadly strong US dollar pushing the pair down but the kiwi is uniquely soft today, along with the Australian dollar.
The weekly NZD/USD chart is ugly. This week it broke through the support from the Q4 lows and has continued to fall. There is some minor support around 0.6500 so we could see a bounce here.
Overall though this isn’t a pretty picture and it doesn’t bode well for the broad risk trade.
Even worse might be NZD/JPY, where it looks to be like a head-and-shoulders pattern
The critical level here is 74.54, which looks like the last line of defense.
On the fundamental side, I don’t share the bearishness of these charts but they’re not pretty.