Overview:
The NZD/USD pair opened below the daily pivot point (0.7180). It continued moving downwards from the level of 0.7130 to the bottom around 0.7126. Today, the first resistance level is seen at 0.7180 followed by 0.7238 while daily support 1 is seen at 0.7133. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7133. So it will be good to sell at 0.7133 with the first target of 0.7100. It will also call for a downtrend in order to continue towards 0.7087 to test the double bottom. The strong daily support is seen at the 0.7087 level, which represents the double bottom on the H4 chart. According to the previous events, we expect the NZD/USD pair to trade between 0.7133 and 0.7087 in coming hours. The price area of 0.7180 - 0.7133 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7180 is not broken. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.7180, then a stop loss should be placed at 0.7250.