We have seen some nice breakdown in the New Zealand dollar/U.S. dollar (NZD//USD) currency pair last week showing a push below the two-year-old trendline support, which means the pair can be in a new bearish cycle. We are tracking an impulsive decline, meaning that weakness is expected to stay here until we see a big five wave drop from 2017 high. It’s a long way to go, thus there's an opportunity on the short side. I was looking for shorts overnight but missed them slightly above 0.7000. I want to give it a new trial on a retest of that level after an a-b-c recovery, which I expect to see by the weekend.
If you want to hear more about the NZD/USD then I invite you to watch my latest video analysis, in which I also talk about big head and shoulder pattern on crude oil and the bullish view on the British pound/Aussie dollar (GBP/AUD) currency pair.