NZD/USD has rebounded but it is still under some bearish pressure after making another lower low. Some good US data later today will boost the greenback, NZD/USD could reach fresh new lows in this situation.
Technically, the currency pair has signaled a potential reversal after breaking the major uptrend line. The price has retested the broken uptrend support and now has made another lower low suggesting further downside move.
NZD/USD has dropped as much as 0.6488 level, it has found support on the S1 (0.6498) level and now is trading back above the median line (ML) of the red descending pitchfork. Personally, I believe that the bias will remain bearish as long as the rate is traded below 0.6580 and below the upside 50% Fibonacci line of the descending pitchfork.
Another lower low, drop below 0.6488 level, or a valid breakdown below the median line (ML) will suggest selling with an immediate target at 0.6393 level.
- NZD/USD Trading Tips
Sell below 0.6488 with the first target at 0.6393 level, the second target is seen at the lower median line (LML) of the descending pitchfork.
Buy only from above 0.6651 high, another higher high will really confirm further growth in the coming weeks.
