NZDUSD as we said in previous posts was showing reversal signs to the upside. However there was no follow through and no continued sign of strength. Price was mostly moving sideways forming a consolidation the last few weeks. Now price is showing the appetite to move lower and break below recent lows.
Red lines -Fibonacci extension targets
Support is at 0.69. Breaking below this level will activate our bearish targets. First target is at 0.6825 and second target is at 0.6690. As long as price is below 0.7055 we remain pessimistic for the coming weeks in NZDUSD. Failure to stay above 0.69 will be a key bearish signal. Bears are in control of the short-term trend but need confirmation of their strength by breaking below 0.69.
