- The NZD/USD pair fell from the level of 0.7316 towards 0.7215. Now, the price is set at 0.7200. The resistance is seen at the level of 0.7240 and 0.7316. Moreover, the price area of 0.7240 – 0.7316 remains a significant resistance zone. Today, there is a possibility that the NZD/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside.
- This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs.
- The pair is expected to drop lower towards at least 0.7074 so as to test the daily support 2 ( first support is seen at 0.7181).
- Thus, amid the previous events, the price is still moving between the levels of 0.7240 and 0.7181. If the NZD/USD pair fails to break through the first support level of 0.7181, the market will decline further to 0.7074 as the second target.
- On the contrary, if a breakout takes place at the resistance level of 0.7320, then this scenario may become invalidated.
The material has been provided by InstaForex Company – www.instaforex.com