Overview:
- The NZD/USD pair broke resistance at 0.6645, which turned into strong support last week. This level coincides with the 23.6% of Fibonacci retracement, which is expected to act as major support this week too. It is also important that the RSI is still signaling that the trend is upward, while the moving average (100) is heading to the upside. Accordingly, the bullish outlook remains the same as long as the EMA 100 is pointing to the uptrend. This suggests that the pair will probably go above the daily pivot point (0.6749) in the coming hours. The NZD/USD pair will demonstrate strength following a breakout of the high at 0.6749. Consequently, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.6749 with the first target at 0.6809. Then, the pair is likely to begin an ascending movement to 0.6873 and further to the 0.6923 levels. The level of 0.6923 will act as strong resistance, and the double top is already set at 1.0128. On the other hand, the daily strong support is seen at 0.6645. If the NZD/USD pair is able to break out the level of 0.6645, the market will decline further to 0.6575.
Weekly technical levels:
- R3: 0.7221
- R2: 0.7047
- R1: 0.6923
- PP: 0.6749
- S1: 0.6625
- S2: 0.6451
- S3: 0.6327
