Technical analysis of NZD/USD for October 21, 2016

Overview:

• The NZD/USD pair continues to move downwards from the level of 0.7215, which represents the double top in the H1 chart. The pair fell from the level of 0.7215 to the bottom around 0.7164. Today, the first resistance level is seen at 0.7175 followed by 0.7215, while daily support is seen at the levels of 0.7148 and 0.7119. According to the previous events, the NZD/USD pair is still trapped between the levels of 0.7175 and 0.7119. The first resistance is seen at 0.6790, for that if the NZD/USD pair fails to break through the resistance level of 0.7175, the market will decline further to 0.7148. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.7120 in order to test the second support (0.7119). On the contrary, if a breakout takes place at the resistance level of 0.7215 (the double top), then this scenario may become invalidated.

Daily key levels:

• Major resistance:0.7175
• Minor resistance:0.7175
• Intraday pivot point:0.7148
• Minor support:0.7119
• Major support:0.7085

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