Last week NZDUSD dropped by a huge percent after PBOC devalued Yuan. Usually soft commodities ( AUD ) perform better then hard commodities ( NZD ), but this time NZD also dropped by a volatilty caused by devaluation. The pair is correcting itself now, and technically it shows Regular Bearish Divergence on H1 chart.
V Shaped Reversal that happened has retraced the pair to the level where it was sold instantly ( 0.6650 ), Next wave of sellers is showing up at POC ( H4, historical sellers, 61.8, regular bearish divergence ) at 0.6600 zone. Pullbacks towards 0.6600 could be used for further shorts towards 0.6550-40 and only a momentum break or 4H close below L4 ( 0.6540 ) would target 0.6510-00. Pay attention to the triangle as vortex of the triangle is close so, if the pair rejects from POC it still needs to pass below DPP/L3/Triangle lower TL ( 0.6550-40 )
Follow @TarantulaFX on twitter for latest market updates