Overview:
- As expected the NZD/USD pair continues to move upwards from the area of 0.7139 . Yesterday, the pair rose from the level of 0.7139 to 0.7191, which coincides with a ratio of 78.6% Fibonacci on the H1 chart. Today, resistance is seen at the levels of 0.7191 and 0.7220. So, we expect the price to set above the strong support levels of 0.7139 and 0.7104; because the price is in a bullish channel now. Equally important, the RSI is still calling for a strong bullish market as well as the current price is seen above the support levels since yesterday. Amid the previous events, the price is still moving between the levels of 0.7139 and 0.7220. In overall, we still prefer the bullish scenario as long as the price is above the level of 0.7139. Furthermore, if the NZD/USD pair is able to break out the first resistance at 0.7139, the market will rise further to 0.7220. Also it should be noted that the double top is set at the point of 0.7256. On the other hand, if the price closes below the strong support levels of 0.7139 - 0.7104, the best location for a stop loss order is seen below 0.7068; because the level of 0.7068 will form a double bottom. Hence, the price will fall into a bearish trend in order to go further towards the double bottom at 0.6951.
