21.12.202017:59 Forex Analysis & Reviews: NZDUSD vulnerable to a pull back towards 0.69

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NZDUSD is turning lower today. Dollar strength is pushing the pair lower. With the RSI having already provided a bearish divergence and breaking below 70, the chances for a pull back towards 0.69 and the 38% Fibonacci retracement have risen.

Red lines - bearish divergence

Black lines - Fibonacci retracement levels

Our target is the 38% Fibonacci level. Price is vulnerable to a move towards that level. NZDUSD made a low today around 0.70. A daily close below this level will confirm that we are moving lower towards 0.69. Holding above today's low could provide a new higher high towards 0.72, but I believe this is the least probable scenario. Either way it is very risky to remain bullish at current levels as the upside potential is limited.

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