Overview:
- The NZD/USD pair is still below the daily resistance (0.7069). Yesterday, it continued to move downwards from the level of 0.7070 to the bottom around 0.6951. Today, the first resistance level is seen at 0.7000 followed by 0.7070, while daily support 1 is seen at 0.6910. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7000. So it will be good to sell at 0.7000 with the first target of 0.6951 to test it again. It will also call for a downtrend in order to continue towards 0.6910. Today, we expect the NZD/USD pair to move between 0.7000 and 0.6910. Therefore, a new support will be formed at the level of 0.6910. The market is still in an uptrend. We still prefer the bullish scenario, as long as the level of 0.7070 is not breached.
- Bullish outlook:
- However, if the trend fails to break the level of 0.6910, the pair will move upwards continuing the development of the bullish trend to the level 0.6960. In the same time frame, resistance is seen at the levels of 0.7000 and 0.7070. The stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 0.6877.
