NZD/USD reversal gains momentum,.6900 level eyed

By FXStreet The NZD/USD pair once again failed to break-through a strong resistance near 0.7050-55 zone and has now dropped to session through level of 0.6960.

After last week’s sharp downfall and relentless selling pressure during the major part of the day, the US Dollar witness some bounce off lower levels. The commodity-linked currencies are the ones feeling most of the pain. In tandem with the reversal in most major currency pairs, the NZD/USD pair too witness sharp reversal from day’s high of 0.7054 and is currently trading near low point of the day.

The pair now seems to have formed a bearish double-top chart pattern near 0.7050-55 area. The pattern, however, would be confirmed only once the pair decisively weakness below an important horizontal support near 0.6850-45 zone. Till that time, the current weakness might be seen as a corrective move.

Technical levels to watch

From current levels, weakness below 0.6950 level is likely to get extended immediately towards 0.6925 level, which if broken might continue dragging the pair lower towards testing its next support near 0.6890-85 region. This 0.6890-85 support represents 23.6% Fibonacci retracement level of 0.6347-0.7054 up-swing and hence, weakness below this support seems to trigger additional downfall towards a key horizontal …read more

Source:: FX Street