Overview:
- The NZD/USD pair continued to move downwards from the level of 0.6931 to the current price around 0.6903. The first resistance level is seen at 0.6973 followed by 0.7025, while daily support 1 is seen at 0.6889. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.6931. So it will be good to sell below the level of 0.6931 with the first target of 0.6889. The strong daily support is seen at the 0.6889 level, which represents the double bottom on the H4 chart. It will also call for a downtrend in order to continue towards 0.6844. According to the previous events, we expect the NZD/USD pair to trade between 0.6931 and 0.6844 in coming hours. The price area of 0.6931 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.6931 is not broken. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.6931, then a stop loss should be placed at 0.6973 (23.6% Fibonacci reterecement levels).
