Price of NZDUSD has been falling since the beginning of the week, when it rebounded from the 0.7052 resistance and the 20-period SMA from the weekly chart. These drops were initiated by a reversal after formation of bearish engulfing bar has formed at the resistance of 0.7370. It is interesting how this week will end. If the closure will take place at the bottom at 0.6860, this will indicate a significant advantage of the bears. Then in coming weeks we will be looking for opportunities to enter short positions, consistent with the momentum.

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The nearest key support for the above scenario is located near the 0.6675 level, from where in May 2016 the rally started. Just around that level would be the target for potential shorts.

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