- The NZD/USD pair dropped sharply from the level of 0.7076 towards 0.7030. Now, the price is set at 0.7030 to act as a daily pivot point. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.7076 and 0.7000 in coming minutes. Furthermore, the price has been set below the strong resistance at the levels of 0.7076 and 0.7185, which coincides with the 61.8% and 78.6% Fibonacci retracement level respectively.
- 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 0.7076. Thereupon, the price spot of 0.7076 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.
So, sell below 0.7076 with the first targets at 0.7000 and 0.6923.
However, the stop loss should be located above the level of 0.7185.
The material has been provided by InstaForex Company – www.instaforex.com