Technical outlook:
The NZDUSD currency pair is trading around 0.7000 mark finding intermediate resistance at 0.7020 early today. The currency is also facing resistance of its trend line since 0.7310/20 levels. Bears could prepare for a drop towards 0.6930 and up to 0.6890 before bulls are back in control. Also note that 0.6890 is fibonacci 0.618 retracement of the recent rally between 0.6800 and 0.7020 levels.
NZDUSD has dropped between 0.7310 and 0.6800 mark in the past few weeks. Ideally, the pair should retrace the above drop before turning lower again. Probability also remains for a further push towards 0.7310/20 mark, indicating a potential trend reversal. In the next few week though, focus shall remain towards 0.7120 mark.
Also note that 0.7120 is fibonacci 0.618 of the drop between 0.7310/20 and 0.6800 levels. Bears could be inclined to be back in control if prices are able to push higher in the next few weeks.
Trading plan:
Potential rally towards 0.7120, against 0.6800 mark.
Good luck!
