Overview:
- As expected, the NZD/USD pair continues to move downwards from the areas of 0.6808 and 0.6759. Yesterday, the pair dropped from the level of 0.6808 to 0.6759, which coincides with a ratio of 78.6% Fibonacci on the H4 chart. Today, resistance is seen at the levels of 0.6808 and 0.6871. So, we expect the price to set below the strong resistance at the levels of 0.6808 and 0.6771; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.7650 and 0.6671. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.6808. Additionally, the RSI starts signaling a downward trend. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.6700, the market will decline further to 0.6671 and 0.6609. Thus, the price will fall into a bearish trend in order to go further towards the strong support at 0.6609 to test it again. The level of 0.6609 will form a double bottom. On the other hand, if the price closes above the strong resistance of 0.6871, the best location for the stop loss order is seen above 0.6910.
