NZD/USD Is Very Bearish

Despite the rather impressive inverted hammer candlestick that had formed at the support at 0.7140 on the monthly time-frame, NZD/USD continued moving to the downside, proving the overall bearish trend is not at all over yet. The last move to the downside wasn’t surprising, considering the pair of doji candlesticks as well as the hanging man candlestick that had formed at the resistance at 0.7200. Currently the pair continues falling and it will likely reach the next major support level, which is the last low and is at 0.6815. A breakout below that support could lead to a further drop towards 0.6750. On the other hand, should the pair bounce off from that support it will likely climb back to 0.7140.