Chart of the day

NZDUSD is breaking below the strong resistance of 0.6060 and is extending lower. The support zone is 0.6000-0.6060 for this extension lower.

Only a break above 0.6060 will invalidate this extension lower and would change the Elliott Wave long-term count. The target downside and a key medium-term resistance level for a strong downside continuation is 0.5540

Short trades are favored to be opened here with a stop loss above 0.6000. We prefer the short trade entries at this stage as we see an ongoing price action to continue lower after the strong confirmed break and a retest of 0.6060. Long trade entries could come only upon a confirmed break above 0.6060.