- In the short term, the NZD/USD pair is going to set strong resistance at the level of 0.7165 and support at 0.7024. The price is still moving between 0.7030 and 0.7165. Also, the NZD/USD pair is still below the ratio of 38.2% Fibonacci retracement levels. As a result, the price has already formed the strong resistance at the level of 0.7165. Now it is approaching it in order to test it again. Therefore, the kiwi will get a downside convincing momentum and the structure of the fall does not look corrective from the area of 0.7165. Consequently, the trend indicates a bearish opportunity below the level of 0.7165. So, it will be a good sign to sell below 0.7160 with the first target at 0.7111 (this level coincides with the daily pivot point) and it will call for a downtrend to continue bearish move towards 0.7024 in order to retest the double bottom in the coming hours.
- On the other hand, the stop loss should always be taken into account. Subsequently, it will be wise to set your stop loss at 0.7185.
The material has been provided by InstaForex Company – www.instaforex.com