The downward movement is a medium-term impulse, which indicates the need to consider any growth as a correction. Strengthening of the US dollar against the New Zealand currency continues for the second consecutive month. To breakthrough of this area will require the appearance of large demand. Yet, this does not happen, which makes any growth probable on the formation of a pattern suggesting a continuation of the fall.
The main goal of the fall is the weekly CZ of 0.6644-0.6630. Testing the zone may lead to the emergence of demand, hence, a partial or full fixation of a short position will be required.
Breaking the downward impulse from the current levels, the appearance of market buyers is required, which can create a movement that absorbs the fall of Thursday. This will allow the instrument to go into the flat phase, where the first target will be the a CZ of 0.6741-0.6734. The downward impulse may be interrupted prior to the speech. Growth will be a correction that will allow you to get better prices for the purchase.
Daily CZ - daily control zone. The area formed by important data from the futures market that change several times a year.
Weekly CZ - weekly control zone. The area formed by marks from important futures market which change several times a year.
Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com