The rate has tested the 38,2% retracement level and now is under selling pressure. We have a minor descending channel on H4 chart. The first target will be at lower low of 0,8310 from 26 August and then lower at the 50% fibonacci. If the bears will ignore the support from the 50% retracement level then the next barrier will be at 61,8%. This pair maintains a strong downward potential because this correction is expected to continue. We have a busy week ahead, is important to have the eyes on all major economic events from the United States. The US Dollar can increase further against the NZD if we’ll have positive news from American economy.
By Olimpiu Tuns – Owner of ovtbusiness.com and trader on financial markets for more than 4 years.