NZDUSD has made a double bottom at 0.6930-0.6945 area. Price is bouncing strongly from the horizontal support. However as long as price is below 0.73 price will be vulnerable to a new move lower.
Blue lines - Fibonacci retracements
NZDUSD has support at recent low of 0.6925. Failure to hold above this level will be a sign of weakness and will push price at least towards the 38% Fibonacci retracement at 0.6765. If this Fibonacci support is broken, we should then expect a move lower towards 0.6555. Resistance is found at 0.7070, 0.7160 and most importantly at 0.73. Traders need to keep a close eye on the first two levels, because a reversal to the downside is more probable around these two price levels. Breaking above 0.7160 would put pressure on 0.73. Bears do not want to see price break above 0.7160. For now we consider the bounce as a selling opportunity and looking to add to any short position if price breaks support at 0.6925.
