NZD/USD plunges on Wednesday
After reaching the 0.7300 mark mid-Tuesday, the New Zealand Dollar gradually lost its value against the Greenback and failed to form another up-wave. The rate was stranded between the 200– and 55-hour SMAs for a few hours before the bearish sentiment eventually took the upper hand.
For the reason that the rate has surpassed all three SMAs, the closest bottom barrier is the relatively distant weekly S1 at 0.7197. Thus, there is a large gap of downside potential. The pair’s movement within the last week demonstrates the existence of a broadening wedge whose bottom line circa 0.7212 may in fact hinder or even halt the current fall.
For the reason that the rate has surpassed all three SMAs, the closest bottom barrier is the relatively distant weekly S1 at 0.7197. Thus, there is a large gap of downside potential. The pair’s movement within the last week demonstrates the existence of a broadening wedge whose bottom line circa 0.7212 may in fact hinder or even halt the current fall.
The NZD/USD charts have been redrawn. The reason for that was the fact that the New Zealand Dollar has continued to fall, ignoring all previously drawn charts.
After doing the review, it was found that the short term directions were dictated by the Fibonacci retracement levels, which could be measured by connecting rather recent high and low levels, which can be observed on the interactive chart. However, the Fibonacci 100% mark’s support has already been passed, which caused another drop of the currency rate.
Most likely the fall will continue until the pair reaches the second weekly support, which is located at the 0.7112 mark.