Breakdown of 0.7220-0.7170 (neckline zone) was needed for a bearish breakout of the depicted consolidation range (0.7170 and 0.7350).
The quick bearish decline took place towards 0.6700-0.6800 where narrow ranged consolidation range was established.
On July 7, evident bullish rejection pushed the NZD/USD pair above 0.6820 temporarily. However, lack of bullish momentum allowed evident bearish decline to occur.
The bulls have failed to maintain enough bullish momentum above 0.6700. This allowed the current bearish decline to occur towards 0.6570.
The NZD/USD pair outlook turned to be bearish. Bearish targets are projected towards the price levels of 0.6520 and 0.6480.
On the other hand, conservative traders can wait for bullish pullback towards 0.6700-0.6720 for a low-risk SELL entry.
The material has been provided by InstaForex Company - www.instaforex.com