Overview:
- As expected, the NZD/USD pair continues to move downwards from the areas of 0.7337 and 0.7314. Last week, the pair dropped from the level of 0.7337 to 0.7280, which coincides with a ratio of 23.6% Fibonacci on the H4 chart. Today, resistance is seen at the levels of 0.7337 and 0.7280. So, we expect the price to set below the strong resistance at the levels of 0.7337 and 0.7280; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.7314 and 0.7238. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.7314. Furthermore, if the NZD/USD pair is able to break out the first support at 0.7285, the market will decline further to 0.7238. Hence, the price will fall into a bearish trend in order to go further towards the second support at 0.7261. The level of 0.7238 will form a double bottom to test it again. On the other hand, if the price closes above the strong resistance of 0.7337, the best location for a stop loss order is seen above 0.7350.
