11.05.201611:31 Forex Analysis & Reviews: Technical analysis of NZD/USD for May 11, 2016

Overview:

• Yesterday, the NZD/USD pair dropped sharply from the level of 0.6816 towards 0.6715. But the pair has rebounded from the bottom of 0.6715 to close at 0.6820. Now, the price is set at 0.6790. On the H1 chart, the resistance is seen at the level of 0.6816 and 0.6870. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.6870 and 0.6715 in coming hours. Moreover, the price spot of 0.6870 remains a significant resistance zone. Therefore, there is a possibility that the NZD/USD pair will move downside and the structure of a fall does not look corrective. In order to indicate the bearish opportunity below 0.6870, sell below 0.6870 with the first target at 0.6715 in order to test yesterday's bottom. Additionally, if the NZD/USD pair is able to break out the bottom at 0.6715, the market will decline further to 0.6687 in order to test the weekly support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the area of 0.6870 today.