Overview:
- The NZD/USD pair faced strong resistances at the levels of 0.7287 because support became resistance.
- So, the resistance is seen at 0.7287. The NZD/USD pair is showing signs of weakness following a breakout of the highest level of 0.7287.
- Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.7287 towards the first support level at 0.7216 in order to test it.
- Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 0.7287.
- Therefore, the major resistance can be found at 0.7287 providing a clear signal to sell with a target seen at 0.7216. If the trend breaks the minor support at 0.7216, the pair will move downwards continuing the bearish trend development to the level of 0.7166 in order to test the daily support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 0.7287 today.
- The bullish outlook remains the same as long as the 100 EMA is headed to the downside. Consequently, the level of 0.7287 remains a key resistance zone.
- However, if a breakout happens at 0.7300, this scenario may be invalidated.
The material has been provided by InstaForex Company – www.instaforex.com
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