Overview:
- The NZD/USD pair broke the support level at 0.7175 which acts as a resistance now. Amid the previous events, the NZD/USD pair is likely to move between the levels of 0.7175 and 0.6983 in the coming hours. The trend is still below the 100 EMA so the bearish outlook remains valid as long as the 100 EMA is headed to the downside. Consequently, the price spot of 0.7175 remains a significant resistance zone. Accordingly, there is a possibility that the NZD/USD pair will move downwards.
The structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.7175, sell below 0.7170 with the first target at 0.6983.
The level of 0.7175 coincides with 61.8% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 61.8% Fibonacci level, the market is still in a downtrend.
Overall, we still prefer the bearish scenario.
Don’t forget to set a stop loss above the last bullish wave at the level of 0.7190.
The material has been provided by InstaForex Company – www.instaforex.com
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