NZD/USD – Short-term correction likely towards 0.7180 – Societe Generale

‘The Age of Jawboners’ – Forex Weekly note from Societe Generale takes note of the double top and other bullish exhaustion patterns on the NZD/USD chart, which suggests the spot could revisit 0.7180 levels.

Key points

NZD/USD has once more come up against the neckline of the double top pattern at 0.74, also the confluence of the daily up sloping channel and a descending one. The formation of a daily shooting star denotes proximity to a hurdle. With the weekly RSI closing in on a resistance, upside is likely to remain capped. Short term, a correction is more likely towards 0.7180 and even towards 0.7060, the 38.2% and 61.8% retracement levels of the recent rebound.