NZD/USD weakened further after China’s inflation remained stagnant in September. A minority of investors hope that the Fed will end up with an additional interest rate hike by the year-end. NZD/USD delivers a vertical sell-off after failing to break above the horizontal resistance plotted at 0.6050. i asset has dropped to near 0.5900 as the appeal for the US Dollar improved after a stubborn United States inflation report and persistent deflation risks in China.
The structure indicates a Double Top formation, which could be triggered after a breakdown below the crucial support of 0.5880. The Kiwi asset trades below the 200-period Exponential Moving Average at 0.5965, which indicates that the long-term trend is bearish. A breakdown of the Relative Strength Index into the bearish range of 20.00-40.00 indicates that the bearish impulse has been triggered. A breakdown below September 7 low at 0.5847 would drag the major toward the round-level support at 0.