On December 16, the price level of 0.6990 failed to apply enough bullish pressure.
Instead of that, bearish movement continued toward the lower limit of the depicted BUY zone (0.6860) which provided significant bullish rejection on December 23.
The NZD/USD pair was trapped within the depicted price range (0.6860-0.6990) until a bullish breakout occurred.
A bullish breakout above 0.7000 allowed the pair to head toward the price level of 0.7100 (Key level) which failed to provide sufficient bearish pressure on the pair.
Bullish persistence above 0.7100 allowed further bullish advance toward 0.7250-0.7350 (Sell-Zone) where bearish price action was expressed as anticipated.
Bearish persistence below 0.7250 was needed to allow further bearish decline toward 0.7100 (note the previous bearish DAILY candlesticks within the SELL-Zone).
The current bearish pullback toward 0.7100 should be watched for possible bullish price action.
Otherwise, bearish persistence below 0.7100 will probably allow further bearish fall towards 0.6960.
The material has been provided by InstaForex Company - www.instaforex.com