Overview:
The NZD/USD pair continues to move downwards from the areas of 0.6635 and 0.6616. the pair dropped from the level of 0.6635 to 0.6597, which coincides with a ratio of 38.2% Fibonacci on the H1 chart. Today, resistance is seen at the levels of 0.6747 and 0.7650. So, we expect the price to set below the strong resistance at the levels of 0.6635 and 0.6663; because the price is in a bearish channel now.
Amid the previous events, the price is still moving between the levels of 0.6635 and 0.6537. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.6635. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.6537, the market will decline further to 0.6555 (daily support 2). On the other hand, if the price closes above the strong resistance of 0.6635, the best location for a stop loss order is seen above 0.6703; hence, the price will fall into a bearish trend in order to go further towards the strong resistance at 0.6695 to test it again. The level of 0.6695 will form a double top.
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