Chart of the Day: NZD/USD

NZD/USD traded to it’s highest levels since March 2nd on Wednesday and formed a textbook (bearish) shooting star candlestick pattern. Price reversed 20 pips finding support around the 100 period simple moving average (pictured in yellow) and the prior high of 0.7051 (April 19th). The pair trades in the context of a downtrend on the weekly chart, where price had retraced to the 50% level of the down move at 0.74615 before resuming the downtrend. Trend on the daily chart is also downward and price sits below the 200 period simple moving average (pictured in orange).¬†Stochastics are pointed lower indicating bearish momentum. A break below the 0.7051 level could see the bears targeting support provided by the upward trendline, currently at around 0.6914. The all important US employment report is due for release later today at 1:30P GMT, where worse than expected data could disrupt the bearish technical picture for NZD/USD.