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Forex: NZD/USD below 0.8450 on RBNZ Financial report

FXstreet.com (Barcelona) - Following the RBNZ Financial stability report just released few minutes ago, the NZD/USD is currently trading at 0.8436 bids falling from session highs at 0.8470 where it was at the time the report came out. The pair is down already a -1.1% for the week so far.

According to media reports, RBNZ chairman has been quoted saying the NZD is overvalued, and that it is “not easy” to deal with an overvalued exchange rate. The NZD/USD has broken the neckline of a potential head and shoulders reversal pattern at the 0.8464 level, printing a 2-week low in the process at 0.8420, pointing to a measured target back to April lows while below mentioned neck line, analysts say.

Immediate support to the downside for NZD/USD lies at recent session lows 0.8434, followed by yesterday's fresh 2-week lows at 0.8420, and April 18/19 lows at 0.8399. To the upside, closest resistance shows at mentioned neck line/session highs 0.8464, followed by Monday's lows at 0.8482, and yesterday's highs at 0.8525.

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