Overview:
- The NZD/USD pair dropped sharply from the level of 0.7053 towards 0.6875. Now, the price is set at 0.6887 to act as a daily pivot point. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.6823 and 0.6985 in coming hours. Furthermore, the price was set below the strong resistance at the levels of 0.6985 and 0.7053, which coincides with the 78.6% and 100% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the NZD/USD pair is continuing in a bearish trend from the new resistance of 0.6887. Thereupon, the price spot of 0.6887 - 0.7053 remains a significant resistance zone. Therefore, a possibility that the NZD/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.6887, sell below 0.6887 with the first targets at 0.6850 and 0.6823 (the double bottom is seen at 0.9785). On the other hand, if the pair succeeds to pass through the level of 0.6823, the market will indicate a bullish opportunity above the level of 0.6823 in order to return to test the daily resistance at 0.6887.
