- The market is continuing to show signs of strength following the break at the price of 0.7872. Therefore, the NZD/USD pair resistance has broken and was turned to support since October 6, 2014, Moreover, the pair has already formed strong support at the level of 0.7872. So, the market indicates a bullish opportunity at the level of 0.7872 with the first target of 0.7990 and continues towards the level of 0.8035. On the other hand, if the trend can break this level and close below 0.8035 – 0.8070, then it will be a downside momentum rather convincing and the structure of the fall does not look corrective, for that the market will indicate the bearish opportunity at the price of 0.8035 – 0.8070. As a result, it will be a good sign to sell at this area with the targets at 0.7870 and 0.7810, but it should be borne in mind the stop loss should never exceed your maximum exposure amounts. Thus, it should set the stop loss above the 0.8075 level.
- Major support will set at the level of 0.7872.
- Major resistance had already placed at 0.8074.
- We expect a new range about 146 pips this week.
- It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is, the market price may go straight through resistance 1 or support 1 and reaches resistance 2 or support 2 and even resistance 3 or support 3.
The material has been provided by InstaForex Company – www.instaforex.com