Technical outlook:
NZDUSD is sliding lower after printing intraday highs around 0.7070. The currency pair is trading close to the 0.7043 mark and is set to reach the level of at least 0.6971. Also note that 0.6971 is the 0.382 fibonacci retracement of the entire rally between 0.6800 and 0.7070 respectively. High probability remains for a bullish bounce if the price manage to reach there.
Furthermore, NZDUSD could drop to 0.618 fibonacci retracement of the above rally, which is seen towards the 0.6905 mark as highlighted on the chart here. Bulls remain poised to be back in control thereafter and push higher towards 0.7300 and higher respectively. Immediate support is seen towards 0.7000, followed by 0.6940, while resistance is around the 0.7090 mark respectively.
A break below 0.7000 would confirm that a meaningful top is in place and that bears remain inclined to push further towards 0.6970 and 0.6900 respectively. Either way, NZDUSD remains poised to rally further towards 0.7200 and higher going forward.
Trading plan:
Potential for drop towards 0.6900 against 0.7090.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com