Overview:
The NZD/USD pair hit the weekly resistance 1 yesterday. But, it dropped down in order to bottom at the point of 0.7226. Today, the pair is trading above its pivot point. It is likely to trade in a higher range as long as it remains above the level of 0.7194. Hence, the major support was already set at the level of 0.7194. Moreover, the double bottom is also coinciding around the major support today. Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100. Therefore, it will be advantageous to buy above the current level of 0.7194 with the first target at 0.7266 in order to retest the weekly resistance 1. From this point, if the pair closes above the weekly resistance 1 of 0.7266 on the H4 chart, the NZD/USD pair may resume its movement to 0.7299 to form a new double top. However, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bearish wave at 0.7162.
