Technical analysis of NZD/USD for January 16, 2018

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Our first target which we predicted in yesterday's analysis has been hit. The pair remains on the upside, backed by its rising 50-period moving average. A strong support base has formed around 0.7275, which should limit any downward attempts. Besides, the relative strength index stands firmly above its neutrality area at 50. Even though a consolidation cannot be ruled out, its extent should be limited.

As long as 0.7250 is not broken, likely advance to 0.7300 and 0.7330 in extension.

The black line shows the pivot point. Currently, the price is above the pivot point, which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines are showing the support levels, while the green line is indicating the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.73000, 0.7330, and 0.7375.

Support levels: 0.7220, 0.7175, and 0.7150.

The material has been provided by InstaForex Company - www.instaforex.com