I Expect A Short Term NZD/USD Depreciation Toward The Support

NZD/USD reached the resistance zone at 0.6990 – 0.7020 and formed two spinning top bars on the D1 time frame at that level. The first one is bullish, the second is bearish, but their bodies overlap perfectly.

Such a bar formation is a good signal for a reversal from a bullish into bearish movement. At the beginning of next week I expect a depreciation of the pair to 0.6950 and a test of the support at 0.6850.

There are two scenarios that may follow:

A continuation of the depreciation to 0.6750 – 0.6700 or a rally toward the resistance at 0.7100 – 0.7150.

On the W1 time frame the pair is at a strong support and that is while I think the second scenario is more probable.

Which scenario is more valid will become clear from the bars that close at the test of the support.