Overview:
- The NZD/USD pair fell pointedly from the level of 0.7323 towards 0.7238. Now, the price is set at 0.7245.
- The resistance is seen at 0.7272 and 0.7323. Moreover, the price area of 0.7272 - 0.7323 remains a significant resistance zone.
- Therefore, there is a possibility that the NZD/USD pair will move downside and the structure of a fall does not look corrective.
- The trend is still below the 100 EMA, so the bearish outlook remains the same as long as the 100 EMA is headed to the downside.
- Thus, amid the previous events, the price is still moving between the levels of 0.7272 and 0.7323.
- If the NZD/USD pair fails to break through the resistance level of 0.7272, the market will decline further to 0.7223 as the first target.
- This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs.
- The pair is expected to drop lower towards at least 0.7161 to test the daily support 2.
- On the contrary, if a breakout takes place at the resistance level of 0.7323, then this scenario may be invalidated.
