NZD/USD is trapped within a down channel, so the price could drop towards fresh new lows. It has increased a little in the short term to retest the downtrend line and now it moves down again.
Still, a larger drop within this channel could be activated and validated by a new lower low, drop and close below the former lows.
Technically, a valid breakout, jump, and stabilization above the downtrend line signal an upside reversal, a potential growth.
Trading Conclusion!
Sell NZD/USD if it drops below 0.6946 and use 0.68 as a potential downside target. The price may approach and reach the channel's downside line.
Buy NZD/USD if the rate jumps above the downtrend line and if it passes above 0.7066 previous high. The target could be at the next higher high of 0.7250.
