Last week, NZD/USD dropped by a huge percent after PBOC devalued yuan. Usually soft commodities (AUD) perform better then hard commodities (NZD), but this time NZD also dropped by a volatilty caused by devaluation. The pair is correcting itself now, and technically it shows Regular Bearish Divergence on H1 chart.
V Shaped Reversal that happened has retraced the pair to the level where it was sold instantly (0.6650). Next wave of sellers is showing up at POC (H4, historical sellers, 61.8, regular bearish divergence) at 0.6600 zone. Pullbacks towards 0.6600 could be used for further shorts towards 0.6550-40 and only a momentum break or 4H close below L4 (0.6540) would target 0.6510-00. Pay attention to the triangle as vortex of the triangle is close, so if the pair rejects from POC, it still needs to pass below DPP/L3/Triangle lower TL (0.6550-40).
