Overview:
- The NZD/USD pair broke support at the level of 0.7076 which acts as a resistance now.
- According to the previous events, the NZD/USD pair is still moving between the levels of 0.7076 and 0.6923 in coming hours.
- The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside.
- Hence, the price spot of 0.7076 remains a significant resistance zone. Consequently, there is a possibility that the NZD/USD pair will move downside.
- The structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.7070, sell below 0.7070 with the first target at 0.6923.
- The level of 0.7070 coincides with 61.8% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 61.8% Fibonacci level, the market is still in a downtrend.
- Overall, we still prefer the bearish scenario.
- On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.7090.
