Technical analysis of NZD/USD for August 08, 2017

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Overview:

  • The NZD/USD pair continues to move downwards from the level of 0.7421. Yesterday, the pair dropped from the level of 0.7421 (this level of 0.7421 coincides with the ratio of 61.8% Fibonacci retracement level) to the bottom around 0.7350. Today, the first resistance level is seen at 0.7421 followed by 0.7481, while daily support 1 is seen at 0.7337. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7379 and 0.7285; for that, we expect a range of 94 pips (0.7379 - 0.7285). If the NZD/USD pair fails to break through the resistance level of 0.7421, the market will decline further to 0.7285. 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 0.7285 with a view to testing the weekly support 2. On the contrary, if a breakout takes place at the resistance level of 0.7421, then this scenario may become invalidated.
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