Overview:
Amid the previous events, the price is still trading between the levels of 0.6915 and 0.7170. The NZD/USD pair movement was controversial as it took place in a narrow sideways channel for a while (approximately for five days). The market showed signs of instability. On the H1 chart, the daily resistance and support are seen at the levels of 0.6915 and 0.7170 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel is completed. The price spot of 0.7170 remains a significant resistance zone. Subsequently, there is a chance that the NZD/USD pair will move to the downside. The fall structure does not look corrective. Resistance is seen at the level of 0.7170 today. So, sell below 0.7170 with the first target at 0.6965 to test yesterday's bottom.
In overall, we still prefer the bearish scenario as long as the price is below the level of 0.6965. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.6915; the market will decline further to 0.6776. Nevertheless, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.7170.
The material has been provided by InstaForex Company - www.instaforex.com