Overview:
In the long term, the NZD/USD pair continued to move downwards from the level of 0.6983 (38.% Fibonacci) to the bottom around 0.6920. The NZD/USD pair is still set below the daily pivot point (0.6920). The trend has already broken the bullish channel at the levels of 0.7073 and 0.6983. The first resistance level is seen at 0.6983 followed by 0.7030, while daily support 1 is seen at 0.6865. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.6920. It will be good to sell at 0.6920 with the first target of 0.6865. It will also call for a downtrend in order to continue towards 0.6814. According to the previous events, we expect the NZD/USD pair to trade between 0.6920 and 0.6814 in coming hours. The price area of 0.6983 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.6983 is not broken. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.6983, then a stop loss should be placed at 0.6703.