Overview:
- The NZD/USD pair opened below the daily pivot point (0.7180).
- It continued moving downwards from the level of 0.7130 to the bottom around 0.7126.
- Today, the first resistance level is seen at 0.7180 followed by 0.7238 while daily support 1 is seen at 0.7133.
- Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7133.
- So it will be good to sell at 0.7133 with the first target of 0.7100. It will also call for a downtrend in order to continue towards 0.7087 to test the double bottom.
- The strong daily support is seen at the 0.7087 level, which represents the double bottom on the H4 chart.
- According to the previous events, we expect the NZD/USD pair to trade between 0.7133 and 0.7087 in coming hours.
- The price area of 0.7180 - 0.7133 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7180 is not broken.
- On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.7180, then a stop loss should be placed at 0.7250.
