Overview:
- As expected the NZD/USD pair continues to move downwards below the level of 0.7178. Yesterday, the pair dropped from the level of 0.7138 to the bottom around 0.7073. Today, the first resistance level is seen at 0.7136 followed by 0.7187, while daily support 1 is seen at 0.7021. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7136 and 0.7021; for that we expect a range of 115 pips (0.7136 - 0.7021). Hence, if the NZD/USD pair fails to break through the resistance level of 0.7136 , the market will decline further to the levels of 0.7050 and 0.7021. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.6971 with a view to test the double bottom in the H4 time frame. On the contrary, if a breakout takes place at the resistance level of 0.7187 (major resistance), then this scenario may become invalidated.
Intraday technical levels:
- R3: 0,7310
- R2: 0,7237
- R1: 0,7187
- PP: 0,7136
- S1: 0,7073
- S2: 0.7022
- S3: 0.6971
