Technical analysis of NZD/USD for January 17, 2018

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Overview:

  • The NZD/USD pair continues to rise from the point of 0.7234 in the long term. It should be noted that the support is established at the level of 0.7234 which represents the 78.6% Fibonacci retracement level in the H1 time frame. The price is likely to form a double bottom in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7234. So, buy above the level of 0.7234 with the first target at 0.7277 in order to test the daily resistance 1 and further to 0.7310. Besides, it might be noted that the level of 0.7310 is a good place to take profit because it will form a new double top. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7234, a further decline to 0.7173 can occur which would indicate a bearish market. On the whole, we are looking for a strong bullish market as long as the trend is still set above the spot of 0.7230.
The material has been provided by InstaForex Company - www.instaforex.com