Technical analysis of NZD/USD for May 24, 2019

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Overview:

The NZD/USD pair is showing signs of weakness following a breakout of the lowest level of 0.6571. On the H1 chart, the level of 0.6571 coincides with 38.2% of Fibonacci, which is expected to act as minor resistance today. Since the trend is below the 38.2% Fibonacci level, the market is still in a downtrend. However, the resistance is seen at the level of 0.6571. Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below the above-mentioned support levels, for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Therefore, resistance will be found at the level of 0.6571 providing a clear signal to buy with a target seen at 0.6500. If the trend breaks the first supprt at 0.6500, the pair is likely to move downwards continuing the bearish trend development to the levels 0.6469 and 0.6424.

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