NZD/USD Broke Out below 0.7130

NZD/USD has been testing the support at 0.7130, which coincides with the (MA)89 indicator on the weekly time-frame for well over a month now – since the end of August. Finally the pair succeeded in breaking out below that support, after forming an impressive shooting star candlestick on the same weekly time-frame at 0.7430 which was a signal for a significant move to the downside. 

Now that the support is finally broken, the pair will probably continue moving south. The first target to the downside is probably around 0.7050, but NZD/USD likely won’t stop falling at that level. The long-term target to the downside is likely much lower, at the last low at 0.6817.