Violet lines- Fibonacci retracement levels
Black line- resistance
In our last analysis on NZDUSD we noted that price was vulnerable to a move lower towards the 38% Fibonacci retracement. NZDUSD broke below recent lows at 0.6245 and is now approaching the next Fibonacci support at 0.6140. Short-term trend remains bearish as price is still making lower lows and lower highs. The RSI is also making new lower lows. Resistance at 0.6380 remains key for the near term trend. As we mentioned yesterday, as long as we trade below this level, bears remain in full control of the short-term trend.
