NZD/USD: NZD/USD has sold off aggressively and the market has already reached its initial target of .8517/01 (late March and April lows). Further down is the 200 day ma at .8454, the 2013-2014 support line at .8424 then the June low at .8402, a fall through which will confirm a long term top formation. This would trigger losses longer term to the 200 week moving average at .8117.
Very near term the down move looks over-extended and we would allow for a small rebound ahead of further losses. We would allow for a retracement in to the .8595-0.8640 zone ahead of another swing lower. We would use this rally to enter new short positions) The market will stay directly offered below the 55 day ma at 0.8642.
CB