Overview:
- The NZD/USD pair couldn't break the support level of 0.7141. Thus, the pair has already formed minor support at 0.7141.The strong support is seen at the level of 0.7106 because it represents the weekly support 1. Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 0.7141 in the H1 chart. Also, if the trend is buoyant, then the currency pair strength will be defined as following: NZD is in an uptrend and USD is in a downtrend. Buy above the minor support of 0.7141 with the first target at 0.7220 (this price is coinciding with the ratio of 88.2% Fibonacci), and continue towards 0.7255 (the double top). Also, note that the price is still above the support levels of 0.7141 and 0.7106. Immediate support is seen at 0.7141, which coincides with a golden ratio (61.8% of Fibonacci). On the other hand, if the price closes below the first support, the best location for the stop loss order is seen below 0.7100; hence, the price will fall into the bearish market in order to go further towards the strong support at 0.6957 to test it. Furthermore, the level of 0.6957 will form a double bottom. But in overall, we still prefer the bullish scenario, because downward trend is still strong for that we expect that the pair will probably go up today.
