Overview:

• The NZD/USD pair is in the short term. The last double top had already set at the price of 0.8846 in the weekly chart. Moreover, it should be noted that the level of 0.8856 is representing the highest price. So, the market will turn to the bearish sentiment from the level of 0.8846. Additionally, support has reached 0.8725 and resistance is going to set at the spot of 0.8850. Hence, we expect a new range of 121 pips this week. Therefore, it will be a good sign to sell at the 0.8846 price with the first target of 0.88. Furthermore, it will continue in the downtrend in order to keep its bearish movement towards 0.8725 (it should be also noticed that the level of 0.8725 is going to form a strong support on July 9, 2014). Notwithstanding, the stop loss should never exceed your maximum exposure amounts. Accordingly, the stop loss should be placed above the double top (0.8846) at the level of 0.8880.