Overview:
- The NZD/USD pair has broken resistance and turned to support since yesterday. Moreover, the pair has already formed strong support at the level of 0.7934 (50% of Fibonacci retracement levels). So, the market indicates a bullish opportunity at the level of 0.7935 with the first target at 0.7975 and continues towards the level of 0.8014. On the other hand, if the trend is able to break this level and close below 0.7930, it will be a downside momentum rather convincing and the structure of the fall does not look corrective, for that the market will indicate the bearish opportunity at the level of 0.7930. It will be a good sign to sell in this area with a target at 0.7900. But it should be borne in mind the stop loss should never exceed your maximum exposure amounts. Thus, it should set the stop loss above 0.8035 because major resistance had been already placed at 0.8014. So, we expect a new range about 163 pips this week.
Observations:
- Resistance 3: 0.8097
- Resistance 2: 0.8042
- Resistance 1: 0.8014
- Pivot point: 0.7934
- Support 1: 0.7900
- Support 2: 0.7859
- Support 3: 0.7825
- It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is, the market price may go straight through resistance 1 or support 1 and reaches resistance 2 or support 2 and even resistance 3 or support 3.
