Overview:
- The NZD/USD pair is still trading around the area of 0.6890 and 0.6860. Thus, it should be noted that the resistance is established at the level of 0.6890 which represents a pivot point. The NZD/USD pair is showing signs of force following a breakout of the highest price of 0.6860. The price has been in a bearish channel this week. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The NZD/USD pair continues to move downwards from the level of 0.6890. As long as the trend is above the price of 0.6890, the market is still in an uptrend. The trend is still strong below the moving average. The NZD/USD pair didn't make any significant movements in the last two days. The market is indicating a bearish opportunity above the mentioned resistance levels. The bullish outlook remains valid as long as the 100 EMA heads for the downside. Therefore, strong resistance will be found around the spot of 0.6890 providing a clear signal to sell with a target seen at 0.6821. If the trend breaks the first support at 0.6821, the pair will move downwards continuing the bearish trend development to the level of 0.6740 in order to test the daily support 2. It should be noted that the major support is seen at the levels of 0.6821 and 0.6740. However, the stop loss should be placed at the price of 0.6900.
