NZDUSD preparing for further backwardation
The daily studies of NZDUSD pair show how bulls have been thwarted in the 0.7740 where prices have plummeted yesterday, engulfing the positivity of the previous day.
This price action encourages us to suggest more bearish movements over upcoming session, but we should witness a sustained breakout below the support set from March low at 0.7190.
The aforementioned support intersects with SMA 50; thus, breakout below it will be a very negative factor.
This breakout may affirm drawing rising wedge pattern with soft technical objectives at 0.7420.
As we need a breakout, we also need more confirmations on RSI14 and ADX. Thereby, we prefer to use sell stop order at 0.7550.