Technical analysis of NZD/USD for August 23, 2017

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Overview:

  • The NZD/USD pair has dropped sharply from the level of 0.7282 towards 0.7207. Now, the price is set at 0.7218. It should be noted that volatility is very high for that the NZD/USD pair is still moving between 0.7238 and 0.7180 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 0.7257 and 0.7272, which coincides with the 38.2% and 50% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the NZD/USD pair is continuing in a bearish trend from the new resistance of 0.7238 which acts as a daily pivot point. Thereupon, the price spot of 0.7238/0.7257 remains a significant resistance zone. Therefore, a possibility that the NZD/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 0.7238, sell below 0.7238 or 0.7257 with the first targets at 0.7207, 0.7180 and 0.7154. However, the stop loss should be located above the level of 0.7300 (0.7282 represents the resistance 3).
The material has been provided by InstaForex Company - www.instaforex.com