The New Zealand Dollar declined against its US counterpart after the formation of a Bearish Engulfing candlestick pattern, as . Prices are now challenging rising trend line support that has limited the downside and guided the pair higher since late May.
Prices are much too close to near-term support to justify entering short from a risk-reward perspective. Positioning is made less attractive still considering the daily narrowing of the available trading range courtesy of an upward-sloping lower bound. Opting for the sidelines seems prudent for now.