NZD/USD looking bearish on charts

Daily chart

NZDUSD D1 (03-21-2016 0141).png

Kiwi is beginning the week on a weaker tone after failing to capitalize on a bullish break from flag pattern on friday, which translated into a bearish closing at 0.6785.

Fonterra is expected to report strong results when it releases its half-year results on Wednesday, but China’s debt concerns may keep the currency under pressure.

Nevertheless, a break above 0.68 handle could turn the attention to 0.6819, which if violated would expose flag resistance at 0.6857.

Conversely, a failure to take out 0.68-0.6819 if followed by a move below immediate support at 0.6747 would increase risk of a bearish break from flag formation. still, bears would need to watch out for a rebound of flag support seen around 0.67 handle.

 

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