The crazy drop had lasted a week since Aug 13th. NZDUSD was not the only major pair to go down, but it could be one of the steepest drops. During this process, the price was down by 3.41%. The price started to recover on Aug 20th. Is this recovery a retracement of the downward trend or a complete turning?
It could be a retracement. Because now, we can see the price has lost momentum. First, the price did not pass the 0.695 level, which means that the price met resistance. The resistance started to work on Aug 24th, which was also the time that the price touched the upper Bollinger Band, so the resistance made more sense here. Besides, this 0.695 level was also the 61.8% Fibonacci level, which was a high resistance pressure level. Another thing is, the Stochastics and RSI both came down from an overbought area, which means the price could turn down soon.
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