Technical analysis of NZD/USD for January 5, 2018

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Our upside targets which we predicted in yesterday's analysis have been hit. Pair is expected to post some further upside gains. The pair managed to break above its previous resistance at 0.7125, which now plays a support role. Both the 20-period and 50-period moving averages are heading upwards now and should continue to push the prices higher. In addition, the relative strength index is bullish above its neutrality area at 50.

Hence, as long as 0.7125 holds on the downside, look for further advance to 0.7170 and 0.7195 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: 0.7195, 0.7210, and 0.7250.

Support levels: 0.7110, 0.7085, and 0.7050.

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