NZDUSD More Downside Possible

Recent Dollar strength has provided surges in Dollar-crosses, the Kiwi not excluded. It has provided enough fuel for this pair to gain momentum to break out of a long-term range that it was contained in.

We will be watching for a retest & rejection from the bottom side of the range to confirm that it has indeed broken. Aggressive entries could be on the very bottom of the range, which aligns well with the 38.2% retrace of the last move down. We will continue to watch for rejection even if price retraces deeper into the previous push down as it appears that supply levels could align right on the 50% retrace & the 61.8% fib level. No Buys are warranted until price reestablishes itself within the range & the 0.7050 level cracks, at which point we will be targeting the top of the range.

Downside Targets:
(1) 0.6700 which is a major pivot point from 2016
(2) 0.6500 which is just before major market pivot point & the origin of the impulse that got us into the long-term range