NZD/USD was trading in the red at the 0.6791 level at the time of writing. The pair ignored DXY's correction and it resumed its sell-off. The bias remains bearish, despite temporary rebounds. Actually, a minor bounce back could help sellers to catch a new downside movement.
Fundamentally, the Final ANZ Business Confidence remained deep in the negative territory at -16.4 versus -18.1 points in the previous reporting period. New Zealand is to release also its Building Consents but this will not have a big impact.
You should be careful around the US CB Consumer Confidence, Chicago PMI, and when Fed Chair Powell will testifies.
NZD/USD Ignored 0.6800 Psychological Level!
NZD/USD ignored the 0.68.59 and the 0.6805 downside obsatcles. Its failure to reach and retest the descending pitchfork's median line (ML) signals strong downside pressure. In the short term, it could come back to test and retest the 0.6805 broken support.
Staying below the 0.6800 psychological level could announce a potential further drop. The current sell-off was somehow expected after making a downside breakout from the previous pattern.
Outlook for NZD/USD!
As long as it stays below the median line (ML), NZD/USD maintains a bearish bias and it could extend its drop. The 0.6755 historical level stands as static support and a potential downside obstacle.
A minor rebound could bring new short opportunities. NZD/USD could approach and reach fresh lows after failing to come back to retest the median line (ML).
