NZD/USD – Could Sellers Take It Lower?
NZD/USD is trapped within a down channel, so the price could drop towards fresh new lows. It has increased a little in the short term to retest the downtrend line and now it moves down again.
Still, a larger drop within this channel could be activated and validated by a new lower low, drop and close below the former lows.
Technically, a valid breakout, jump, and stabilization above the downtrend line signal an upside reversal, a potential growth.
Sell NZD/USD if it drops below 0.6946 and use 0.68 as a potential downside target. The price may approach and reach the channel’s downside line.
Buy NZD/USD if the rate jumps above the downtrend line and if it passes above 0.7066 previous high. The target could be at the next higher high of 0.7250.
The material has been provided by InstaForex Company – www.instaforex.com