The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until bearish breakdown of 0.7200 occurred on April 23.
Breakdown of 0.7220-0.7170 (neckline zone) was needed to confirm the depicted reversal pattern. Bearish target levels around 0.7050 and 0.7000 have been achieved already.
The price level of 0.7050 was considered a key-level for the NZD/USD bears That's why, bearish persistence below 0.7050 allowed further bearish decline to occur towards the price levels around 0.6800.
As anticipated, the recent bullish pullback towards the price level of 0.7050 (Broken Demand-Level) offered a good opportunity for a valid SELL entry.
Quick bearish decline took place towards 0.6800 where temporary bearish breakdown occurred. This allowed further bearish movement towards 0.6680 where evident signs of bullish rejection were manifested.
Currently, the price zone 0.6770-0.6800 stands as a prominent demand zone to be watched for bullish rejection and a valid BUY entry.
