The NZDUSD has been a slow mover lately. It took sellers fifteen sessions to move just 150 pips.
However, Wednesday’s close below 0.6970 was a significant development. This level is the November 2016 low and is also an area that has served as a pivot since March of last year.
As assurance that 0.6970 is now resistance, both Thursday and Friday encountered substantial selling pressure above the area. Therefore, any rotation back to 0.6970 could offer a favorable opportunity to get short.
Do note, however, that the March lows at 0.6890 will likely attract a bid if tested. As such, any position I take here will be a short-term play.