Overview:
- The NZD/USD pair continues to rise from the level of 0.7245 in the long term. It should be noted that the support is established at the level of 0.7245 which represents the 61.8% Fibonacci retracement level on the H4 chart. The price is likely to form a double bottom in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7245. the price spot of 0.7245 and 0.7250 remains a significant support zone. Thus, the trend is still bullish as long as the level of 0.7245 is not breached. The RSI is still calling for the strong bullish market as well as the current price is also above the moving average 100. So, buy above the level of 0.7245 with the first target at 0.7313 in order to test the daily resistance 1 and further to 0.7343. Also, it might be noted that the level of 0.7343 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7245, a further decline to 0.7184 can occur which would indicate the bearish market. In overall, we still prefer the bullish scenario as long as the price is below the level of 0.7245.
