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09.05.201803:12 Forex Analysis & Reviews: Technical analysis of NZD/USD for May 09, 2018

Long-term review

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Overview:

As expected, the NZD/USD pair continues moving downwards from the areas of 0.7108 and 0.7031. Yesterday, the pair dropped from the level of 0.7031 to 0.6955 on a daily chart. Today, resistance is seen at the levels of 0.7031 and 0.6858. So, we expect the price to set below the strong resistance at the levels of 0.7031 and 0.6858 because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 0.6955 and 0.6858. Overall, we still prefer the bearish scenario as long as the price is below the level of 0.6955. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.6935, the market will decline further to 0.6858 (daily support 1). Hence, the price will fall into a bearish trend in order to go further towards the strong support at 0.6780 to test it again. The level of 0.6780 will form a double bottom. On the other hand, if the price closes above the strong resistance of 0.7108, the best location for a stop loss order is seen above 0.7108.

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