Trading recommendation:
- According to the previous events, the NZD/USD pair has still trapped between the level of 0.7176 and 0.7372 in the daily chart.
- Strong resistance will be formed at the level of 0.7372, providing a clear signal for sell deals with a target seen at 0.7176 in order to test the double bottom. Stop loss is to be placed above 0.7401.
- Strong support will be formed at the level of 0.7180 providing a clear signal for buy deals with a target at 0.7280.
Observations:
- The weekly resistance will be set at the level of 0.7280. Also, it should be noted that the double top is expected at 0.7372.
- The weekly support is seen at 0.7180. Also, the double bottom is expected at 0.7176.
- If the trend is upward, the strength of the currency pair will be defined as following: NZD is in uptrend and USD is in downtrend.
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a range trade; it looks like the trend is trapping and going up or down. If you sell or buy for a long term in this period, you will surely lose your profit.
