Overview:
- The NZD/USD pair broke resistance that has turned into strong support at the level of 0.7238 this week. Today the level of 0.7238 is expected to act as major support. From this point, we expect the NZD/USD pair to continue moving in a bullish trend from the support levels of 0.7265 and 0.7238. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Consequently, the first support is set at the level of 0.7265. So, the market is likely to show signs of a bullish trend around the spot of 0.7265 - 0.7265. In other words, buy orders are recommended above the spot of 0.7265 - 0.7265 with the first target at the level of 0.7302; and continue towards 0.7349 (the double top). This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment. On the other hand, if the NZD/USD pair fails to break through the resistance level of 0.7349, the market will decline further to 0.7300. The pair is expected to drop lower towards at least 0.7265 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as key level today. According to the previous events, we expect the NZD/USD pair to trade between 0.7238 and 0.7349.
