NZD is clearly the weakest one for the week. In particular, selloff in NZD/USD accelerated and continues today, in even in a rather quiet session. NZD/USD is a top 10 mover across all time frame.
Judging from the fact that 100% projection 100% projection of 0.7436 to 0.7152 from 0.7394 is firmly taken out. And there is no sign of bottoming yet. Fall from 0.7436 shouldn’t be a correction to rise from 0.6779. It should be a leg in the larger pattern. For now, near term outlook will remain bearish for 61.8% retracement of 0.6779 to 0.7436 at 0.7030 and below.
However, it should be noted that NZD/USD is now in a medium term triangle like pattern. Such a pattern could be consolidating the rebound from 2015 low at 0.6102. With that in mind, we’d not expect a break of 0.6779 low. And strong support should be seen between 0.6779 /7030 to bring another near term reversal.
