- The NZD/USD pair opened below the daily pivot point (0.7202). It continued moving downwards from the level of 0.7202 to the bottom around 0.7140. Today, the first resistance level is seen at 0.7202 followed by 0.7230, while daily support 1 is seen at 0.7138. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7230.
- So it will be good to sell at 0.7230 with the first target of 0.7138. It will also call for a downtrend in order to continue towards 0.7079 to test the double bottom.
The strong daily support is seen at the 0.7079 level, which represents the double bottom on the H1 chart. According to the previous events, we expect the NZD/USD pair to trade between 0.7202 and 0.7079 in coming hours. The price area of 0.7202 – 0.7230 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7230 is not broken.
On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.7230, then a stop loss should be placed at 0.7280.
The material has been provided by InstaForex Company – www.instaforex.com