On December 16, the price level of 0.6960 failed to apply enough bullish pressure. Instead, the pair continued sliding toward the lower limit of the depicted buy zone (0.6860) which provided significant bullish rejection on December 23.
The NZD/USD pair was trapped within the depicted price range (0.6860-0.6990) until a bullish breakout occurred.
A bullish breakout above 0.6960-0.7000 allowed the pair to head toward the price level of 0.7100 (the key level) which failed to provide sufficient bearish pressure on the pair.
Bullish persistence above 0.7100 allowed further advance toward 0.7250-0.7350 (the sell zone) where the bearish price action should be expected.
Bearish persistence below 0.7250 is needed to allow further decline toward 0.7100 (note the previous bearish DAILY candlesticks expressed within the sell zone).
As anticipated, bearish persistence below 0.7100 (the key level) allows a further decline toward 0.6960 which failed to provide enough support for the pair.
That's why a further fall is expected toward 0.6860 (the lower limit of the depicted BUY zone) where a bullish position was suggested in previous articles.
This week, bullish breakout above the depicted key-level (0.6960) was achieved. That's why, any bearish pullback towards 0.6960 should be watched for bullish rejection and a possible BUY entry.
