Technical analysis of NZD/USD for February 15, 2017

Overview:

• The NZD/USD pair continues to move downwards from the level of 0.7314. The pair fell from the level of 0.7314 to the bottom around 0.7190.
• The first resistance level is seen at 0.7265 followed by 0.7314, while daily support 1 is seen at 0.7179.
• According to the previous events, the NZD/USD pair is still moving between the levels of 0.7265 and 0.7118.
• If the NZD/USD pair fails to break through the resistance level of 0.7265, the market will decline further to 0.6546.
• This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs.
• The pair is expected to drop lower towards at least 0.7179 so as to test the first support.
• It will also call for a downtrend in order to continue towards 0.7118.
• The daily strong support is seen at 0.7118. On the other hand, if a breakout takes place at the resistance level of 0.7375 (the double top), then this scenario may become invalidated.
• Overall, we still prefer the bearish scenario.

The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com