NZD/USD is trading within an up channel, at 0.6543 level, but the failure to approach the upside line or to stay above the 0.6700 psychological level has signaled a potential downside movement.

The price is almost to reach the uptrend line, up channel's support, a breakdown below this line followed by a retest could validate a corrective phase, significant decline. So, we may have a good selling opportunity if the pair escapes from this ascending channel.

• NZD/USD Trading Tips

Sell below the uptrend line if the price makes a swing low or if it drops somewhere below the 0.6515 level. The next downside targets are seen at 0.6393, 0.6218, and at the 0.6130 levels.

Buy only if the currency pair jumps and stabilizes (test and retest the broken line) above the downtrend line, or if it jumps above the 0.6700 level again.