Overview:
- Last week, the NZD/USD pair has fallen from the level of 0.7067 towards 0.6972. Right now, the price is set at 0.6921 to act as a minor support. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.7020 and 0.6900 in coming hours.
- Furthermore, the price has been set below the strong resistance at the levels of 0.7020 and 0.7067, which coincides with the 23.6% Fibonacci retracement level. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the NZD/USD pair is continuing in a bearish trend from the new resistance of 0.7067. Thereupon, the price spot of 0.7067 remains a significant resistance zone.
- Therefore, a possibility that the NZD/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.7067, sell below 0.7067 or 0.7021 with the targets at 0.6900 and 0.6849.
- However, the stop loss should be located above the level of 0.7067 (the first daily resistance).
