Quotations on NZDUSD last week (19-24.02) were included in the range of the candle from the previous week (12-17.02), therefore the formation of Inside Bar was formed with the range of 0.7430-0.7230 – around 200 pips. At the beginning of the year, the pair broke the 7-month downward trend line (thin blue line). Now it seems that there will be an attempt to re-test the aforementioned channel resistance.
In addition, a double-top formation has formed. Currently, we are watching an attempt to break the lower limit of this formation. If it turns out to be effective, we can expect continuation of declines to the closest support zone around 0.7200. The next support is 0.7160 and 0.7100. On the way, local corrections and attempts to return to the IB will probably happen. Looking at the situation in a longer time span, the supply may aim at reaching strong support level at 0.7052 (bold blue line)