Overview:
- The NZD/USD pair will face strong resistance at the level of 0.7053 because the price of 0.7053 represents a double top. So, the strong resistance is already seen at the level of 0.7053 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.7053, the market will indicate a bearish opportunity below the new strong resistance level of 0.7053. Hence, the RSI starts signaling a downward trend at the point of 0.7053. Consequently, the market is likely to show signs of a bearish trend. Thus, it will be good to sell below the level of 0.7050 with the first target at 0.9600 and further to 0.7000 in order to test the daily support. If the NZD/USD pair is able to break out the daily support at 0.7000, the market will decline further to 0.6938. However, the price spot of 0.7050 and 0.7060 remains a significant resistance zone. Then, the trend is still bearish as long as the level of 0.7055 is not breached. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.7950.
