The New Zealand Dollar exchange rate is wedged between support at 0.5035 near the previous swing low and the upper boundary of a bearish channel that has contained prices since December. A bearish Inverted Hammer candlestick has been followed by a Doji as prices increasingly run out of room to continue moving sideways. A breakout looks imminent, with the convincingly bearish bias of the overall trend favoring a short position. We will look for a daily close below 0.5035 on the current candle and position to sell NZDUSD, initially targeting multiyear support/resistance at 0.4790.
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