After dynamic declines pair NZDUSD almost from the beginning of March this year moves in a consolidation whose upper limit (0.7070) coincides with 50% of the Fibonacci correction. As a result of dynamic downward move from the beginning of the week, the market hit local support 0.6980 yesterday and today it reached the lower limit of consolidation.
Rejection of this level could signal that at least the upward correction would occur, resulting in a re-test of yesterday’s level.
However, taking into account the current situation on daily chart, we can see that the above-mentioned consolidation is only a correction of previous falls and taking into account the dynamics of the move from the beginning of the week it seems more likely to overcome this level.
If this happens and the NZDUSD falls below the support zone currently tested, we could expect a continuation of declines even to 0.6690.
