21.03.201815:26 Forex Analysis & Reviews: Technical analysis of NZD/USD for March 21, 2018

Overview:

The NZD/USD pair opened below the daily pivot point at 0.7194. It continued to move downwards from the level of 0.7194 to the bottom around 0.7162. Today, the first resistance level is seen at 0.7194 followed by 0.7226, while the daily support 1 is seen at 0.7127. The NZD/USD pair broke support which turned to resistance at 0.7194. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains around the first support of 0.7162 which is expected to act as minor support today. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. Amid the previous events, the NZD/USD pair is still moving between the levels of 0.7194 and 0.7127, so we expect a range of 67 pips in the coming minutes at least. Therefore, the first resistance can be found at 0.7194 providing a clear signal to sell with a target seen at 0.7127. If the trend breaks the level of 0.7127, the pair will move downwards continuing the bearish trend development to the level of 0.7090 in order to test the daily support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 0.7226.