- NZD/USD needs to break above the trendline resistance at 0.6645 to invalidate bearish pressures.
- A violation at 0.66 would imply a continuation of the recent sell-off.
NZD/USD is currently trading at 0.6626, representing marginal losses on the day, having hit a low of 0.6615 during the Asian trading hours.
Despite the minor bounce, the path of least resistance remains to the downside, as the resistance of the trendline falling from Dec. 31 high and Jan. 1 high is still intact.
At press time, that trendline resistance is located at 0.6645. A convincing move through that level would imply an end of the pullback from highs above 0.6750 and could bring in a break above 0.6654. That would mark an invalidation of lower highs setup on the hourly chart and confirm a bullish reversal.
On the downside, a violation of the recent low of 0.66 could yield additional losses to levels near 0.6650.