Overview:
- The NZD/USD pair continues to move downwards from the level of 0.7314. The pair fell from the level of 0.7314 to the bottom around 0.7190.
- The first resistance level is seen at 0.7265 followed by 0.7314, while daily support 1 is seen at 0.7179.
- According to the previous events, the NZD/USD pair is still moving between the levels of 0.7265 and 0.7118.
- If the NZD/USD pair fails to break through the resistance level of 0.7265, the market will decline further to 0.6546.
- This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs.
- The pair is expected to drop lower towards at least 0.7179 so as to test the first support.
- It will also call for a downtrend in order to continue towards 0.7118.
- The daily strong support is seen at 0.7118. On the other hand, if a breakout takes place at the resistance level of 0.7375 (the double top), then this scenario may become invalidated.
- Overall, we still prefer the bearish scenario.
