Overview:
- The NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7122. On the H4 chart. the level of 0.7122 coincides with 78.6% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 78.6% Fibonacci level, the market is still in an uptrend. But, major support is seen at the level of 0.7122. Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. Therefore, strong support will be found around the spot of 0.7122 - 0.7159 providing a clear signal to buy with a target seen at 0.7250. If the trend breaks the first resistance at 0.7250, the pair will move upwards continuing the bullish trend development to the level 0.7305 in order to test the daily resistance 2. However, if the NZD/USD pair succeed to break through the support level of 0.7122 today, the market will decline further to 0.7057.
