NZD/USD: trade idea
• NZD/USD reversed from resistance zone
• Next sell targets - 0.7400 and 0.7300
NZD/USD recently reversed sharply down from the resistance zone lying at the intersection of the multiple resistance levels: the strong resistance level 0.7630 (former support level which reversed the pair sharply in December and January), the resistance trendline of the daily down channel from July, 61.8% Fibonacci Correction of the previous sharp minor impulse 3 and the upper daily Bollinger Band. The downward reversal from this resistance zone led to the formation of the strong Japanese candlesticks reversal pattern – Bearish Engulfing.
The downward reversal from the aforementioned resistance zone completed the latest minor correction 4. NZD/USD is likely to fall further inside the active minor impulse 5 to the next sell targets 0.7400 and 0.7300.