Breakdown of 0.7220-0.7170 (neckline zone) was needed for a bearish breakout of the depicted consolidation range (0.7170 and 0.7350). Target levels have been achieved around 0.7050 and 0.7000.
The price level of 0.7050 was considered a key-level for the NZD/USD bears. That's why bearish persistence below 0.7050 allowed further bearish decline to occur towards the price levels around 0.6800.
As anticipated, the recent bullish pullback towards the price level of 0.7050 (Broken Demand-Level) offered a good opportunity for a valid SELL entry.
The quick bearish decline took place towards 0.6800 where a false bearish breakdown occurred.
This allowed temporary bearish movement to occur towards 0.6680. However, the pair failed to maintain enough bearish momentum.
On July 7, evident bullish rejection pushed the NZD/USD pair above 0.6820 again.
This was followed by a recent bullish reversal pattern (123 pattern) which enhances the bullish side of the market. Recent signs of bullish weakness were manifested on the chart.
The bulls are failing to maintain enough bullish momentum above 0.6820 indicating evident signs of bullish weakness.
Bullish fixation above 0.6820 is needed to allow further bullish advancement towards 0.6900 and 0.6980. Otherwise, further bearish decline should be expected towards 0.6680.
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