NZD/USD Downside Risks Remain
I have been waiting for further NZD/USD weakness but the pair has remained above 0.6800 which is the level I am targeting for entering a short position. The pair continues to trade along the 200-Day SMA at 0.6942 which is a major technical level and a break below can often lead to a larger move lower. The current downward trending channel isn’t as steep as I would have expected and a sign that weakness going forward may be slow and deliberate. My target remains 0.6685-9/2 low followed by 0.6592-38.2% Fibo of 0.4898-0.7638.
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