Technical analysis of NZD/USD for February 09, 2017

Overview:

• The NZD/USD pair continues to move downwards from the level of 0.7314. Yesterday, the pair dropped from the level of 0.7314 (but the level of 0.7375 is representing double top) to the bottom around 0.7190. Today, 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; for that we expect a range of 145 pips in the coming hours. 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 contrary, if a breakout takes place at the resistance level of 0.7375 (the double top), then this scenario may become invalidated.

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