# NZD/USD: Bounce or Break? (May 26, 2014)

Source: https://www.tradersway.com/resources/market-info/nzd-usd-bounce-or-break-may-26-2014/
Language: en
Updated: 2014-05-26

NZD/USD is currently testing a major support level, visible on the 4-hour forex time frame. Stochastic is already moving in the oversold area but has yet to cross higher and indicate a potential return of bullish momentum.



Over the weekend, New Zealand reported a weaker than expected trade balance reading and led the Kiwi to start the week on a weak note. Take note though that other economic reports from the country released earlier in the month showed signs of resilience in hiring and consumer spending.



![NZD/USD: Bounce or Break? (May 26, 2014)]



If the support area holds, NZD/USD could make its way back to the middle of the range or the next resistance area near the .8650 minor psychological level. A downside break could be indicative of a longer-term selloff, perhaps until the .8000 major psychological support.



*By Kate Curtis from Trader’s Way*