NZD/USD’s down trend resumes this week by breaking 0.6700 support and hit as low as 0.6659 so far. Immediate focus is now on channel support at 0.6640. Firm break there will be a sign of downside acceleration. Next near term target is 61.8% projection of 0.7217 to 0.6700 from 0.6889 at 0.6569 and then 100% projection at 0.6372. In any case, outlook will stay bearish as long as 0.6889 resistance holds, in case of recovery.
Meanwhile, note that NZD/USD has taken out 38.2% retracement of 0.5467 to 0.7463 at 0.6701. The development argues that rise from 0.5467 has completed at 0.7643 after rejection by 0.7557 long term resistance. Even if fall from 0.7463 is still a correction, there is prospect of deeper fall to 61.8% retracement at 0.6229 before making a bottom. That chance would be high if the above mentioned channel support is firmly taken out.
