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Overview:

  • The NZD/USD pair continues to move downwards below the level of 0.7178. Yesterday, the pair dropped from the level of 0.7138 to the bottom around 0.7073. Today, the first resistance level is seen at 0.7136 followed by 0.7187, while daily support 1 lies at 0.7021. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7136 and 0.7021. Therefore, we expect the price to move in the range between 0.7136 and 0.7021. Hence, if the NZD/USD pair fails to break through the resistance level of 0.7136, the market will decline further to the levels of 0.7050 and 0.7021. There are no changes to our technical outlook. The bias remains bearish in the nearest term, testing the 0.7021 level or lower.
    This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6971 with a view to test the double bottom on the H4 time frame. On the contrary, if a breakout takes place at the resistance level of 0.7187 (major resistance), then this scenario may become invalidated.
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The material has been provided by InstaForex Company – www.instaforex.com

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