NZDUSD 08-08-2017

The New Zealand Dollar broke below trend line support guiding the move higher against its US cousin since mid-May, hinting a significant reversal is in the works. The move lower may reflect pre-positioning ahead of the upcoming RBNZ monetary policy announcement.

We are likely to Sell below 0.7395 

SL 0.7450

Target  0.7230

 The next layer of significant support comes in at 0.7276, the 38.2% Fibonacci Retracement. A daily close below that opens the door for a challenge of the 50% level at 0.7188. Alternatively, a move back above the 23.6% Fib at 0.7384 paves the way for a retest of the 14.6% Retracement at 0.7450.