Technical analysis of NZD/USD for July 21, 2017

Overview:

• On the one-hour chart, the USD/CHF pair bullish trend from the support levels of 0.7333 and 0.7282. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.7333, which coincides with a golden ratio (61.8% of Fibonacci retracement levels). Consequently, the first support is set at the level of 0.7333. So, the market is likely to show signs of a bullish trend around the spot of 0.7333. In other words, buy orders are recommended above the golden ratio (0.7333) with the first target at the level of 0.7414. Furthermore, if the trend is able to break out through the first resistance level of 0.7414. We should see the pair climbing towards the double top (0.7414) to test it. If the trend breaks the support at 0.7414 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 0.7466 in order to test the daily resistance 2. It would also be wise to consider where to place a stop loss; this should be set below the second support of 0.7282.

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