Technical analysis of NZD/USD for July 18, 2017

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Overview:

  • The NZD/USD pair is continuing to rise from the level of 0.7250 in the long term. It should be noted that the support is established at the level of 0.7250 which represents the first support on the H4 chart. The price is likely to form a double bottom in the same time frame. The NZD/USD didn't make significant movement yesterday. There are no changes in my technical outlook. The bias remains bullish in nearest term testing 0.7400 or higher. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7305. So, buy above the level of 0.7305 with the first target at 0.7400 in order to test the daily resistance 1 and further to 0.7450. Also, it might be noted that the level of 0.7450 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7250, a further decline to 0.7205 can occur which would indicate a bearish market. Since there is nothing new in this market, it is not bearish yet. However, stop loss is to be placed below the level of 0.7200.
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