Forex technical analysis: NZDUSD makes a key break...

Falls below triple bottom.

The NZDUSD fell below a triple bottom at the 0.6817 level today and the price ran lower. That break is real folks. What was a floor now becomes a ceiling. Stay below is more bearish.

Having said that, there can be corrective moves and we are seeing one now. Those corrections will test the sellers commitment - even to "real breaks". You expect to see corrections to find sellers who want to get on the break. If they want that, they will come in and stall corrective moves. That gives shorts more confidence and the price can continue the trend.

We are in a corrective move, and we are testing an area where the price should find some resistance. Looking at the 5-minute chart the 100 bar MA on the 5 minute chart, swing highs on the price action near the lows and the 38.2% of the last flush lower today, comes in at 0.6799 to 0.68042. That area is a test area. Traders who want to get short against the 0.6817 area don't have to risk a lot to get in on the short in this area.

What traders don't want to see on any correction now, is a move above the 0.6817. What was a floor becomes a ceiling. That is the ceiling to stay below.