NZD/USD Holding Steady Near 0.6850 but Seems Vulnerable to Further Downside
Following a 3-day of continuous sharp declines and breaking below its immediate support near 0.6880 level, the NZD/USD
pair bounced a bit to 0.6867 before cooling-off back to 0.6850 level
amid thin trading conditions because of a bank holiday in New-Zealand.
The pair on daily chart has formed a bearish reversal pattern, three black crows, indicating weakness in the established up-trend and potential emergence of a near-term down-trend.
Technical levels to watch
The pair, on Friday, broke below an immediate strong support confluence near 0.6880 level, comprising of 20-day SMA and 23.6% Fibonacci retracement level of 0.6347-0.7054 up-move. This support break-point now seems to act as immediate resistance for the pair on the upside.
On the downside, a follow-up selling pressure below Friday's lows support near 0.6835-30 is likely to accelerate the fall towards its next major support near 0.6780-70 confluence region, comprising of 50-day and 38.2% Fibonacci retracement level.