Overview:
- The key level is 0.6345 because it is representing a daily pivot point. Moreover, the 0.6345 level is coinciding with the ratio of 50% Fibonacci retracement level on the H1 chart on September 29, 2015. We expect a range about 70 - 90 pips today. Equally important, the resistance has been already formed at the 0.6408 level. As it is known, history will probably repeat itself at this level again. So, according to the previous events, the NZD/USD pair has been still moving between 0.6408 and 0.6321 (daily support). Therefore, it will be a good decision to sell below 0.6408 with the first target of 0.6360 and 0.6345. If the trend breaks the daily pivot point (0.6345), it will call for a downtrend in order to continue its bearish movement towards 0.6320. On the other hand, the stop loss should never exceed your maximum exposure amounts, so the stop loss should be placed above the resistance at the price of 0.6431.
Observations:
- If the trend is upward, then the strength of the currency will be defined as follows: NZD is in an uptrend and USD is in a downtrend.
- Major support will be at the level of 1.6320.
- Major resistance will be at the level of 0.6408.
- We expect a new range up to 88 pips this week.
