NZD/USD: Bears Remain in Control Despite Slight Gain
The New Zealand Dollar (NZD) has nudged higher against the US Dollar (USD), but its near-term bearish trend remains intact. The pair is trading near session highs above $0.5850, but remains within Wednesday's range with key support in the $0.5800 area eyed.
High oil prices and rising global bond yields are keeping risk appetite subdued, which is weighing on the NZD/USD pair. The US Dollar is struggling amid a mix of factors, including investors' disappointment over the US Treasury's bond buyback program, which has eroded its safe-haven status.
A bearish Head & Shoulders formation is in progress, with price action nearing the neckline between $0.5820 and $0.5800. Bulls need to break above the 200-day simple moving average at $0.5855 to shift focus towards the September 4 high near $0.5900.
On the downside, a clear break below the September 2 low at $0.5802 would activate an H&S pattern with support areas at $0.5765 and $0.5740, and a measured target just below the year-to-date lows at $0.5626.