Overview:
- The NZD/USD pair has broken support at the level of 0.7173 which acts as resistance today. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7173 and 0.6983. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is heading for the downside. Hence, the price spot of 1.1239 remains a significant resistance zone.
Consequently, there is a possibility that the NZD/USD pair will move downside. The structure of a fall does not look corrective.
So, we expect the price to set below the strong resistance at the levels of 0.7173 and 0.7085; because the price is in a bearish channel now.
In order to indicate a bearish opportunity below 0.7085, sell below 0.7085 with the first target at 0.6983. Also, it should be noted that the level of 0.775 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.
The material has been provided by InstaForex Company – www.instaforex.com
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