Overview:
- The NZD/USD pair continues to move downwards from the level of 0.6820, which represents the double top in the H1 chart. Yesterday, the pair dropped from the level of 0.6820 to the bottom around 0.6740. Today, the first resistance level is seen at 0.6790 followed by 0.6820, while daily support is seen at the levels of 0.6723 and 0.6693. According to the previous events, the NZD/USD pair is still trapping between the levels of 0.6790 and 0.6693. Hence, we expect a range of 97 pips in coming hours.
- The first resistance stands at 0.6790, for that if the NZD/USD pair fails to break through the resistance level of 0.6790, the market will decline further to 0.6723. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6700 in order to test the second support (0.6693). On the contrary, if a breakout takes place at the resistance level of 0.6820 (the double top), then this scenario may become invalidated.
