NZD/USD pair is trading in the red and it seems determined to approach the 0.6377 low in the upcoming hours. It is under strong selling pressure as the USD is very powerful. NZD/USD is following the same path as AUD/USD which has invalidated a potential leg higher.
The price has plunged today and it has resumed the drop of the last days. It would be very important for us to observe how the pair will react around the 0.6377 level. A false breakdown could signal that the downside is complete and the pair could regain bullish momentum.
You can see that the price has found temporary support at 0.6377 below the 61.8% retracement level. It has come back higher to retest the 50% level and now it could reach fresh new lows if it stabilizes below the 61.8% level.
The minor rebound was somehow natural after the the massive drop. The false breakout above the 50% level has signaled bearish pressure. NZD/USD has failed to retest the sliding parallel line (SL), this is another reason why the pair could drop towards fresh new lows in the upcoming days.
The major downside support is seen at 0.6284, NZD/USD could approach this level or the median line (ML) of the descending pitchfork if it stays below the 61.8% and below the sliding line (SL). Another lower low will confirm a drop towards the mentioned targets.
