Technical analysis of NZD/USD for August 01, 2017

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Overview:

  • Pivot point: 0.7444.
  • The NZD/USD pair continues to move upwards from the level of 0.7490. Last week, the pair rose from the level of 0.7490 to a top around 0.7557. So, the first resistance level is seen at 0.7557 followed by 0.7600, while the daily support 1 is seen at 0.7444 (61.8% Fibonacci retracement). According to the previous events, the NZD/USD pair is still moving between the levels of 0.7490 and 0.7600; so we expect a range of 110 pips. Furthermore, if the trend is able to break out the first resistance level at 0.7557, we could see the pair climbing towards the double top (0.7600) to test it. Therefore, buy above the level of 0.7490 with the first target at 0.7557 in order to test the daily resistance 1 and further to 0.7600. Also, it should be noted that the level of 0.7600 is a good place to take profit because it will form a new double top. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7444, a further decline to 0.7375 can occur which would indicate a bearish market.
The material has been provided by InstaForex Company - www.instaforex.com