Technical analysis of NZD/USD for December 28, 2017

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Overview:

  • The NZD/USD pair continues to move upwards from the level of 0.7032. Yesterday, the pair rose from the level of 0.7032 to a top around 0.7090. Today, the first resistance level is seen at 0.7100 followed by 0.7160, while daily support 1 is seen at 0.7032 (78.6% Fibonacci retracement). According to the previous events, the NZD/USD pair is still moving between the levels of 0.7050 and 0.7160; so we expect a range of 110 pips. Furthermore, if the trend is able to break out through the first resistance level at 0.7100, we should see the pair climbing towards the double top (0.7160) to test it. Therefore, buy above the level of 0.7062 with the first target at 0.9990 in order to test the daily resistance 1 and further to 0.7100. Also, it might be noted that the level of 0.7160 is a good place to take profit because it will form a new double top on the H4 chart. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7032, a further decline to 0.6940 can occur which would indicate a bearish market.
The material has been provided by InstaForex Company - www.instaforex.com