Overview:
- At the moment, the NZD/USD pair movement is mixed as it is trading in a narrow sideways channel. The market demonstrates signs of instability because it is moving between the levels of 0.6861 and 0.6948. Importantly, the pair opened below the daily pivot point (0.6948) yesterday. It continued to move downwards from the level of 0.6948 to the bottom around 0.6861. Today, the first resistance level is seen at 0.6948 followed by 0.7002 and 0.7048, while daily support 1 lies at 0.6830. Furthermore, the moving average (100) starts signaling a downward trend. Therefore, the market is indicating a bearish opportunity below 0.6948. So it will be good to sell at 0.6948 with the first target at the 0.6861 level which represents the double bottom on the H4 chart. It will also call for a downtrend to continue towards 0.6830. The strong daily support is seen at the 0.6830 mark. According to the previous events, we expect the NZD/USD pair to trade between 0.6948 and 0.6830 in coming hours. The price area of 0.6948 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.6950 is not broken. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.6948, then a stop loss should be placed at 0.7048.
