FX.co ★ NZD/USD upside reversal?

NZD/USD downside outlook

The NZD/USD pair moves somehow sideways after failing to make a new lower low. The pair could reach the downtrend line soon. Technically speaking, the downtrend line is seen as dynamic resistance, as an upside obstacle.

As long as it stays under the downtrend line, the NZD/USD could drop anytime. Also, failing to reach the downtrend line may signal strong sellers. The pair moves sideways between 0.6976 high and 0.6864 low.

An upside reversal could be announced if the pair jumps and stabilizes above the downtrend line and above 0.6976 high.

NZD/USD trading conclusion

The price could drop as long as it stays below the downtrend line. On the other hand, jumping above the downtrend line and above the 0.6976 may activate an upside reversal.