Tests for sellers.
Last week, the NZDUSD fell below trendline support, the 38.2% of the move up from the January 2016 low at 0.70499 and the 200 day MA. ON Friday the pair closed below that MA the first time since March 15, 2016. All of that was bearish, bearish, bearish.
Today we are seeing a decline in the US dollar and the NZDUSD is seeing that momentum as well.
Looking at the daily chart above, we have moved back above the 200 day MA (at 0.70256), the 38.2% retracement at 0.70499, and are up testing the underside of the broken trendline at 0.7073 currently.
On a corrective move, you don't want to see too many broken levels "taken back".
IF the sellers are to keep control, they should look to lean against this broken trend line (is it the neck line of a head and shoulders too?). Move above it and the bearish waters are a bit more cloudy - at least for the time being - and we should see a move back toward 0.7100 to 0.71078 area (see green circles).