H4
New Zealand dollar collapsed to the 0.7880 level, having passed over 160 pips in a day and closed slightly above the strong support level 0.7700.
This is where the upper limit of the Ichimoku Cloud that prevented the bearish attack is located.
However today in the morning the currency pair continued declining and reached the lower limit of the upside Cloud – the Senkou Span B. Moreover, the bears are still pressing it and can break into the negative area soon. As a result, the fixation below the Kumo can cause a trend switch to the downside.
H1
In a 1-hour timeframe the situation changed in favour of the sellers. As a result of yesterday’s decline the price appeared far below the Ichimoku Cloud.
Besides, the bears are now supported by all Indicator lines. Thus, the Tenkan-sen and the Kijun-sen formed today quite a strong Dead cross (5) and the Senkou Span A and B switched the Cloud’s character to the downside (1, 2).
Obviously, in the nearest time the trading will take place in the negative area. After certain consolidation on current levels (the Chinkou Span signals oversold market) the downtrend will be continued.
The next support is located slightly below 0.7600.