Overview:
- The NZD/USD pair broke resistance that turned into strong support at the level of 0.6870 yesterday. The level of 0.6870 is expected to act as major support today. From this point, we expect the NZD/USD pair to continue moving in a bullish trend from the support levels of 0.6870 and 0.6920. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Consequently, the first support is set at the level of 0.6920. So, the market is likely to show signs of a bullish trend around the spot of 0.6920. In other words, buy orders are recommended above the spot of 0.6920 with the first target at the level of 0.7000; and continue towards 0.7050 (the double top). This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment. On the other hand, if the NZD/USD pair fails to break through the resistance level of 0.7050 this week, the market will decline further to 0.6996. The pair is expected to drop lower towards at least 0.7000 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as minor support today. According to the previous events, we expect the NZD/USD pair to trade between 0.7050 and 0.6870.
