Overview:
- The NZD/USD pair has dropped sharply from the level of 0.9956 towards 0.9850. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.9921 and 0.9819 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 0.9910 and 0.9956, which coincides with the 78.6% and 88.2% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the NZD/USD pair is continuing in a bearish trend from the new resistance of 0.9921. Thereupon, the price spot of 0.9921 remains a significant resistance zone. Therefore, a possibility that the NZD/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.9921, sell below 0.9921 with the first targets at 0.9819 and 0.9776 (the double bottom is seen at 0.9776). However, the stop loss should be located above the level of 0.9956.
