Technical analysis of NZD/USD for August 16, 2017

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Overview:

  • As expected, the NZD/USD pair has kept moving downwards from the level of 0.7288. Yesterday, the pair dropped from the level of 0.7288 (this level of 0.7288 coincides with the ratio of 23.6%) to the bottom around 0.7224. Today, the first resistance level is seen at 0.7288 followed by 0.7328, while daily support 1 is seen at 0.7175. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7288 and 0.7175; for that, we expect a range of 113 pips (0.7288 - 0.7175). If the NZD/USD pair fails to break through the resistance level of 0.7288, the market will decline further to 0.7175. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.7175 with a view to testing the daily support 1. On the contrary, if a breakout takes place at the resistance level of 0.7329, then this scenario may become invalidated.
The material has been provided by InstaForex Company - www.instaforex.com