Bearish breakdown of the NZDUSD could lead 100 pips lower.

The NZDUSD has underperformed the AUDUSD quite a bit (see AUDNZD rally since late 2021) and this continues to be the case today as the pair closed below the key support at .6060. This bearish breakdown should target the 127% extension (.5949) of the July 14th to August 10th rally. The risk for bears near term is that the EURUSD continues to hold support, GBPUSD is near channel support and the AUDUSD has a lot of support too. However, any broad based USD strength and the NZDUSD could be the leader lower once again.

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