FxWirePro: CAD/JPY’s Interim Bulls Seem Deceptive, Major Downtrend Still Imminent On Head & Shoulder Pattern – Trade & Hedging Setup
FxWirePro:GBP/NZD hits 2-month lows, vulnerable to more downside
• GBP/NZD declined on Wednesday as demand for riskier assets like New Zealand dollar grew on optimism that the worst of the economic downturn from the spread of the coronavirus is over.
• Underlying trend remains bearish. A break below 1.9549 might spur fresh downward momentum.
• At GMT 16:35, the pair was trading 0.18% lower at 1.9573 after hitting daily high at 1.9731.
• Technical signals are bearish as RSI is at 30, daily momentum studies 5, 10 & 21 DMAs track south.
• On the upside, Immediate resistance is located at 1.9743 ( 300 DMA), any close above will push the pair towards 1.9800 (23.6% fib).
• On the downside, strong support is seen at 1.9549 (Daily low) and break below could take the pair towards 1.9456 (Lower BB).
Recommendation: Good to sell on rallies around 1.9600, with stop loss of 1.9800 and target price of 1.9400.