Overview:
- The NZD/USD pair continues to move downwards strongly from the price of 0.7421. The pair fell from the level of 0.7421 (this level of 0.7421 coincides with the ratio of 61.8% Fibonacci retracement level) to the bottom around 0.7350. There are no changes in my technical outlook. The bias remains bearish in nearest term testing 0.7285 or higher. Today, the first resistance level is seen at 0.7421 followed by 0.7481, while daily support 1 is seen at 0.7337. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7379 and 0.7285; for that, we expect a range of 94 pips (0.7379 - 0.7285). If the NZD/USD pair fails to break through the resistance level of 0.7421, the market will decline further to 0.7285. 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 0.7285 with a view to testing the weekly support 2. On the contrary, if a breakout takes place at the resistance level of 0.7421, then this scenario may become invalidated. Moreover, we expect a range between the levels of 0.7421 and 0.7285.
