Overview:
- The NZD/USD pair has faced strong resistance at the level of 0.7359 because support became resistance on September 12, 2016. So, the strong resistance has been already formed at the level of 0.7359 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.7359, the market will indicate a bearish opportunity below the new strong resistance level of 0.7359 (the level of 0.7359 coincides with a ratio of 50% Fibonacci). Moreover, the RSI starts signaling a downward trend. Thus, the market is indicating a bearish opportunity below 0.7359 so it will be good to sell at 0.7359 with the first target of 0.7293. It will also call for a downtrend in order to continue towards 0.7236. The daily strong support is seen at the levels of 0.7293 and 0.7236. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.7388. Also it should be noted that the trend is still showing strength above the moving average (100).
