In our last analysis we noted that NZDUSD was vulnerable to a move towards 0.69 and the 38% Fibonacci retracement. Although bulls managed yesterday to absorb selling pressures, this is not the case today. Price is under pressure and approaching yesterday lows. Breaking below them will be a bearish sign.
NZDUSD is moving lower today and the RSI as well. The bearish divergence we noted seems to be in play and the chances of a deeper pull back towards the 38% Fibonacci retracement have risen. Support is found at 0.7015-0.70. Breaking below this level will increase chances of seeing 0.69. This is not the time to be bullish. Upside potential is limited while downside potential significant.
