NZDUSD moved south since setting a formation of double top at 0.8800 in July 2014. Although these declines did not reach the 0.6000 level, first bullish reaction was in September 2015, and since then we have seen steady increases.
Looking on weekly chart, we can see that all these increases are within a channel. It is also worth noting that pair is approaching a very significant resistance converging with the 50% Fibonacci correction from the previous downward movement.
On daily chart, we note that this zone is placed in the upper limit of consolidation lasting since the beginning of June 2016.
If this zone will stop declines and in the area will appear supply reaction, we expect at least a downward correction. The closest, local and still untested support remains the upper limit of the previous growth channel from which we broke out yesterday.
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