Overview:
- The NZD/USD pair continues to move downwards from the zone of 0.7309 and 0.7279. Yesterday, the pair dropped from the level of 0.7309 to 0.7242 which coincides with a ratio of 23.6% Fibonacci on the daily chart. Today, resistance is seen at the levels of 0.7309 and 0.7279. So, we expect the price to set below the strong resistance at the levels of 0.7309 and 0.7279; because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 0.7242 with the first target at 0.7213 in order to test the daily support. If the NZD/USD pair is able to break out the daily support at 0.7213, the market will decline further to 0.7183 to approach support 2 today. However, the price spot of 0.7309 and 0.7279 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7279 is not breached.
