Technical analysis of NZD/USD for May 23, 2017

Overview:

• The NZD/USD pair continues to move upwards from the level of 0.6942. Yesterday, the pair rose from the level of 0.6942 (the level of 0.9866 coincides with a ratio of 50% Fibonacci retracement) to a top around 0.7000. Today, the first support level is seen at 0.6942 followed by 0.6913, while daily resistance 1 is seen at 0.7037. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7037 and 0.6942; for that we expect a range of 95 pips (0.7037 – 0.6942). On the one-hour chart, immediate resistance is seen at 0.7014, which coincides with a ratio of 78.6% Fibonacci retracement. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50), Therefore, if the trend is able to break out through the first resistance level of 0.7073, we should see the pair climbing towards the double top at the level of 0.7067 to test it. It would also be wise to consider where to place stop loss; this should be set below the second support of 0.6913.

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