I wrote yesterday about watching the triple doji in USD/CHF for signs of a big break. I was looking at the right pattern but the wrong pair.
NZD/USD broke down today after three days of sideways moves. Even with sentiment improving, the kiwi is having difficulty getting off the floor.
A modest retracement phase wouldn’t change the underlying positive dynamics of the pair but would be a healthy correction.
NZDUSD daily with 200-day moving avg
Look for a continued move down to 0.8160/80.
…and don’t take your eye off USD/CHF as the coil continues to tighten.