NZD/USD: Target Hit!
We have had a steady decline in the past month, with price falling from highs in the 0.7000 region, dropping 300 PIPs to my long-term target of 0.6700. This level was hit yesterday, dropping 90 PIPs for the day to reach the key monthly support level. Within the past month we have not seen much of a retracement or pullback from this pair, however, now we have found the key support we could see a substantial bounce.
Already today, as expected from my key level, we have seen price show some rejection and we have recovered from the lows of 0.6690 to hit daily highs of 0.6750. As shown on my chart and explained within our member's zone this morning, we have now hit our inner downtrend line which is now acting as resistance. This area is important as to whether we will make a larger pullback or continue falling to the downside. If we break higher through the inner trendline, this is a sign that the bulls have taken control for the short term trend. If we fail to break higher and reject this level strongly, we can see this pair come lower to retest 0.6700 once more and continue to make a lower low.
Currently watching price action at its current level to see how this plays out...