Overview:
- As expected theNZD/USD pair keeps moving upwards from the level of 0.6557. Yesterday, the pair rose from the level of 0.6876 which represents a support to the top around 0.6461. Today, the first resistance level is seen at 0.6971 followed by 0.7014, while daily support 1 is found at 0.6876. According to the previous events, the NZD/USD pair is still moving between the levels of 0.6913 and 0.7014. Therefore, we expect a range of 101 pips (0.7014 - 0.6913). If the NZD/USD pair fails to break through the resistance level of 0.7014, the market will decline further to 0.6942. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any reversal signs. The pair is expected to drop lower towards at least 0.6942 with a view to test the daily pivot point. On the contrary, if a breakout takes place at the resistance level of 0.7014 (the double top), then this scenario may become invalidated. Briefly, we accept that the trend will climb towards to the resistance of 0.7014. Then, it will probably rebound from the spot of 0.7014 in order to return the re-test the pivot at the 0.6942 level.
