Technical analysis of NZD/USD for August 09, 2018
The NZD/USD pair opened below the weekly pivot point (0.6683). It continued to move downwards from the level of 0.6705 to the bottom around 0.6661. Today, the first resistance level is seen at 0.6705 followed by 0.6732, while daily support 1 is seen at 0.6661. Furthermore, the RSI starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.6683. So it will be good to sell at 0.6683 with the first target of 0.6630. It will also call for a downtrend in order to continue towards 0.6602.
The strong daily support is seen at the 0.6602 level, which represents a new double bottom on the H1 chart. According to the previous events, we expect the NZD/USD pair to trade between 0.6683 and 0.6602 in coming hours. The price area of 0.6683 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.6683 is not broken. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.6732, then a stop loss should be placed at 0.6754.