NZD/USD May Keep Depreciating But It Won’t Be For Long

During the last few days of the market week the NZD/USD pair was falling sharply – for one day alone it dropped with 96 pips.

On the D1 time frame we can see an inverted bullish hammer at the bottom of the downward movement, which is a potential signal for a rally. We should not forget that the D1 bar has not closed yet and it will do so at the beginning of the new trading week on Sunday to Monday night.

On the weekly and H4 time frame there is a signal for a drop while the D1 support is around 0.6800 – 0.6780. Should the pair break out below it there is a potential for a depreciation to 0.6700, where there is a strong support on the monthly time frame. There we should observe the pair very carefully, but in my opinion there won’t be a breakout and we will probably witness a renewal of the rally to 0.6900 – 0.7000.