Overview:
- The market opened below the daily pivot point. It continued to move downwards from the level of 0.6870 to the bottom around 0.6833. Today, the first resistance level is seen at 0.6870 followed by 0.6951, while daily support 1 is seen at 0.6800. The NZD/USD pair broke support, which turned into strong resistance at 0.6951. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (0.6870), which is expected to act as minor support today. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. According the previous events, the NZD/USD pair is still moving between the levels of 0.6870 and 0.6757, so we expect a range of 113 pips in coming hours. Therefore, the major resistance can be found at 0.6951 providing a clear signal to sell with a target seen at 0.6813. If the trend breaks the minor support at 0.6813, the pair will move downwards continuing the bearish trend development to the level of 0.6756 in order to test the daily support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 0.6870 and 0.6951 this week.
