Overview:
- The NZD/USD pair continues to move downwards strongly from the price of 0.7421 this week. The pair fell from the level of 0.7421 to the price of 0.7337, and it keeps moving in a downtrend to set around the spot of 0.7270 - 0.7337. Moreover, we expect a range between the levels of 0.7337 and 0.7201 (the double bottom). Right now, there are no changes in my technical outlook. The bias remains bearish in nearest term testing 0.7201 or lower. Today, the first resistance level is seen at 0.7337 followed by 0.7421, while daily support 1 is seen at 0.7285. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7201 and 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 0.7201 with a view to testing the weekly bottom. If the trend is able to break the double bottom at the point of 0.7201, then it will continue to next target at the weekly support 2 of 0.7109. On the contrary, if a breakout takes place at the resistance level of 0.7421 (major resistance), then this scenario may become invalidated.
