Yesterday’s New Zealand dollar sell-of led NZDUSD to a significant support area of 0.7054. Today the falls are continued and as you can see on the weekly chart below, the price is testing the upward trend line extending from the September 2015 high.
Currently yesterday broken support at 0.7054 is a resistance and if we rebound from the trend line we can expect a supply reaction in its vicinity. If bears are able to overcome the trend line in the nearest future, another important support area is seen near 0.6840. From this level in May began a strong uptrend, which pushed the pair 700 pips higher. Bullish attitude will be challenged only when pair will close above the resistance at 0.7204.
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