NZD/USD falls below weekly S1

Even though the NZD/USD expectedly breaks out of the junior descending channel yesterday, it did not manage to stay within the dominant ascending channel as well. The fall outside the senior pattern is attributed to a combined resistance level formed by the 20-, 55-, 100- and 200-hour SMAs near 0.7230. In the early morning the pair made an attempt to get back into formation. However, this time it was reversed by the weekly S1 at 0.7277. For this reason, the rate is exacted to slip to the next support level set up by the monthly PP at 0.7247. The sharp surge might happen only in the case of a sudden fundamental event. From a technical perspective, the northern path is blocked by a number of sizable resistance lines.