Overview:
- The major resistance of the NZD/USD pair has already set at the level of 0.6634. Equally important, the 0.8921 price is coinciding with the ratio of 61.8% Fibonacci retracement levels. Additionally, in light of the previous events, the price has still been trapped between 0.6634 and 0.6467. Moreover, the range will be around 167 pips from today until next week. Besides, it should be noted that if the trend is ascending, then the strength of the currency will be defined as follows: NZD is in an uptrend and USD is in a downtrend. Therefore, it will be wise to sell below the level of 0.6634 with the first target of 0.6503. If the trend can break the first target at 0.6634; then it might resume to 0.6467. Furthermore, it should be noted that the double top will be set at the level of 0.6467. Another thought, stop loss should never exceed your maximum exposure amounts. So, stop loss should be placed above the 0.6682 level.
Observations:
- The NZD/USD pair will call for a downtrend in order to continue its bearish movement towards 0.6503 in order to test this strong support (it should be noted that the price of 0.6503 is going to form the weekly support 1). The pair will be able to continue towards the double bottom at 0.6467. At the same time, stop loss should be placed at the level of 0.6682.
