Overview:
- The NZD/USD pair rose from the level of 0.7229 to top at 0.7261 yesterday. Today, the NZD/USD pair has faced strong resistance at the spot of 0.7261 - 0.7298. So, the strong resistance has been already faced at the level of 0.7261 and the pair is likely to try to approach it in order to test it again and form a double top (0.7298). For this reason, the NZD/USD pair is starting to trade in a bearish trend from the new resistance levels of 0.7261 - 0.7298 to form a bearish channel. According to the previous events, we expect the pair to move between 0.7298 and 0.7174. Also, it should be noted that major support is seen at 0.7174, while immediate resistance is found at 0.7228. Then, we may anticipate potential testing of 0.7228 to take place soon. Moreover, if the pair succeeds in passing through the level of 0.7228, the market will indicate a bearish opportunity below the level of 0.7261. A breakout of that target will move the pair further downwards to 0.7174. Sell orders are recommended below the area of 0.7261 - 0.7298 with the first target at the level of 0.7228; and continue towards 0.7174. On the other hand, if the NZD/USD pair succeeds to break out through the resistance level of 0.7298; the market will rise further to the level of 0.7375 in order to form a new double top on the H4 chart.
