NZDUSD – Will 0.7050 Stop Growth Again

According to my last week’s projection, due to bullish response market rejected local support at 0.6867 converging precisely at that time with 50% of Fibonacci correction from the earlier upward movement, and since then we have seen continued growth.

As a result of this move market has overcome a very important resistance zone at level 0.6950. It is worth noting that this level has not yet been tested from above (as support), which could determine action from bears in the near future and at least a downward correction.

Looking on H4 chart, we notice that market is approaching another significant resistance at level 0.7050. It is worth noting that this level has already halted demand for further growth and that if a supply reaction would occur in its vicinity, it could initiate potential drops.