The NZD/USD currency pair showed an active descending interest, came close to an important support level of 0.7200, forming double-digit candles beside it. It is possible to assume a decrease in volatility, with the formation of a temporary flat within 0.7200 / 0.7240, where the bulls will try to work out the level, forming a full-fledged correction in the market. In case of a coincidence of the forecast, it is possible to expect a movement to the values of 0.7275 / 07320.
At the same time, traders should not lose sight of short positions, in the event that the quotation will be able to firmly fix below the level of 0.7200, while not reducing the "bearish" interest.
Key levels
Resistance zones: 0.7380; 0.7550; 0.7700
Support zones: 0.7200 (+/- 20p); 0.7050
Signals
- Buying a pair is recommended after the resumption of "bullish" interest, probably after a clear slowdown within the values of 0.7200 / 0.7240, with a further prospect of a move to 0.7275 / 07320.
- Selling a pair is recommended to be made after a clear fixation of the price below 0.7200, with the prospect of a move to 0.7100 / 0.7050.
Note: Forecasts are not a direct guide to action!
