- The NZD/USD pair will keep the bearish sentiment from the level of 0.6736 in the H4 chart. In addition, it should be noted that the level of 0.6736 represents the weekly resistance because it is coinciding with the ratio of 38.2% Fibonacci Expansion. Accordingly, it will be a good sign to sell below it at 0.6736 with a first target at 0.6657 to continue towards the point of 0.6621 in order to test a double bottom in this area. Then, if the price breaks the double bottom, it will call for a strong downtrend market in order to continue its bearish movement towards 0.6582 (the weekly support 1). Equally important, the resistance would set at the 0.6736 level. Moreover, it should be noted that the range this week will be between the levels of 0.6736 and 0.6582; for that we expect a tiny range this week that will be probably up to 160 pips. However, the stop loss should be placed above the the weekly resistance at the price of 0.6780.
- If the stop loss should be set in 44 pips (0.6780 – 0.6736) because the risk of 44 pips could make profit of 66 pips.
- The key level will set at the level of 0.6736.
- The double bottom has already placed at the point of 0.6621.
The material has been provided by InstaForex Company – www.instaforex.com