NAB FX Technical Strategy Research notes that the bearish monthly reversal pattern produced in August 2017 remains the dominant technical factor in NZD/USD.
"This was confirmed by an LT momentum failure and negative LT momentum shift. This leaves little doubt in our minds as to the downward path of NZD/USD on a multi-month basis. In the near term, the decline has stalled at weekly Bollinger band support (0.7075/85). The 50-week MA (0.7141) remains pivotal.
"Weekly closes about 0.7141 imply a stalled downtrend / closes below 0.7141 confirm a renewed downtrend.," NAB argues.