Technical analysis of NZD/USD for September 06, 2018

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Overview:

The NZD/USD pair faced strong resistances at the levels of 0.6612 because support became resistance thisweek. So, the strong resistance has been already formed at the level of 0.6612 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 0.6612, the market will indicate a bearish opportunity below the new strong resistance level of 0.6612 (the level of 0.6612 coincides with a ratio of 23.6% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50). Thus, the market is indicating a bearish opportunity below 0.6612 so it will be good to sell at 0.6612 with the first target of 0.6537. It will also call for a downtrend in order to continue towards the levels of 0.6495 and 0.6455. The daily strong support is seen at 0.6455. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.6659.

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