NZD/USD falls below key support levels, will they hold up again?
The pair touches a low of 0.7180 on the day, falling below the pivotal 38.2 retracement level of 0.7187 and the 200-day MA (blue line) @ 0.7184. Those two levels have helped to stall any downside move in the pair on at least four tests so far this year.
How will the fifth test of said levels play out now?
A daily close below the support levels mentioned could be a case of where things start to get ugly for the pair. Especially if it falls below the year's low of 0.7154. That opens up a move towards the 50.0 retracement level of 0.7110 and a broader move towards 0.7000.
As for my bias on the pair, it's well indicated here but this area is one I'm most wary of because of how strong it has acted as a support level for the pair so far this year.
