- According to the previous events, the NZD/USD pair is still moving between the levels of 0.6447 and 0.6336. The strong resistance level will be formed at 0.6447 (this level coincides with the ratio of 61.8% Fibonacci retracement levels in the H1 time frame) generating a clear signal to sell deals with targets at 0.7380 and 0.6336 in order to test the double bottom on the same chart. The stop-loss is to be placed above the resistance at the level of 0.6447. On the other hand, the strong support level will be formed at 0.6336 (this level coincides with the ratio of 38.2% Fibonacci retracement levels) providing a clear signal to buy with targeta seen at 0.6391 (50% Fibonacci retracement levels) and 0.6450. Also, it should be noted that if the trend breaks 0.6336, it will continue towards the weekly support 2 at the level of 0.6267, which acts as strong support. However, the stop loss should never exceed your maximum exposure amounts. So, it is to be placed below the strong support at the price of 0.6221.
- The key level is seen at 0.6366 because it represents the daily pivot point.
- If the trend is upward, then the strength of the currency will be defined as follows: NZD is in an uptrend and USD is in a downtrend.
The material has been provided by InstaForex Company – www.instaforex.com