• NZDUSD broke support area
• Likely to test round support level 0.7000
NZDUSD currency pair under bearish pressure after the price broke the support area lying between the key support level 0.7150 (which stopped the previous shorty-term impulse wave (a)) and the support trendline of the daily up channel from the end of October. The breakout of this support area accelerated the (c)-wave of the active minor ABC correction 2 from the start of January.
Given the worsening risk appetite on rising covid cases and the resultant USD bullishness seen across the FX markets today – NZDUSD can be expected to fall further toward the next round support level 0.7000 (double bottom from December and the target price for the completion of wave 2 ).