Technical analysis of NZD/USD for February 09, 2018

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Overview:

  • The NZD/USD pair has faced strong resistances at the level of 0.7268 because support has become resistance since yesterday. So, the strong resistance has already formed at the level of 0.7268, and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.7268, the market will indicate a bearish opportunity below the new strong resistance level of 0.7268 (the level of 0.7268 coincides with a ratio of 38.2% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100). Hence, the market is indicating a bearish opportunity below 0.7268, so it will be good to sell at 0.7268 with the first target of 0.7175 (double bottom). It will also call for a downtrend in order to continue towards 0.7140. The daily strong support is seen at 0.7140. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.7300.
The material has been provided by InstaForex Company - www.instaforex.com