Overview:
- According to the previous events, the NZD/USD pair is still moving below the resistance of 0.6674 (between 0.6674 and 0.6580). The key price is set at the level of 0.6588 (the daily pivot point for August 3, 2015). The double top will be formed at the 0.6690 level. As it is known, history will probably repeat itself at this level again. Therefore, it will a good sign to sell below 0.6690 with the first target of 0.6555. It will call for a downtrend in order to continue its bearish movement towards 0.6526. Besides, the double bottom will be at the point of 0.6498 on the H1 chart.
Observations:
- If the trend is buoyant, the strength of the currency will be defined as following: NZD is in an uptrend and USD is in a downtrend.
- As a rule, the market is highly volatile if the previous day or week has huge volatility (382.47).
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a trading range; it looks like the trend is trapping and going up or down. If you sell or buy in the long term, you will surely lose your profit.
