- The NZD/USD pair continues to move downwards from the levels of 0.7164, 0.7141, and 0.7117. Yesterday, the pair dropped from the level of 0.7164 (this level of 0.6557 coincides with the ratio of 61.8% Fibonacci retracement levels) to the bottom around 0.7089. Today, the first resistance level is seen at 0.7117 followed by 0.7164, while daily support 1 is seen at 0.7066. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7117 and 0.7066. If the NZD/USD pair fails to break through the resistance level of 0.7117, the market will decline further to 0.7066. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.7043 in order to test the double bottom on the H1 chart. Thus, the market is indicating a bearish opportunity below the above-mentioned resistances levels, for that the bearish outlook remains the same as long as the 100 EMA is headed for the downside.
On the contrary, if a breakout takes place at the resistance level of 0.7164 (major resistance), then this scenario may become invalidated.
The material has been provided by InstaForex Company – www.instaforex.com