Technical analysis of NZD/USD for February 17, 2017

Overview:

• Amid the previous events, the price is still trading between the levels of 0.7162 and 0.7226. The NZD/USD pair movement was controversial as it took place in a narrow sideways channel for a while. The market showed signs of instability. On the H1 chart, the daily resistance and support are seen at the levels of 0.7226 and 0.7162 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel is completed. The price spot of 0.7226 remains a significant resistance zone. Thereafter, there is a chance that the NZD/USD pair will move to the downside. The fall structure does not look corrective. Resistance is seen at the level of 0.7226 today. So, sell below 0.7226 with the first target at 0.7190 to test yesterday’s bottom.
  In overall, we still prefer the bearish scenario as long as the price is below the level of 0.7190. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.7190; the market will decline further to 0.7162. Also, it should be noted that the double bottom is seen at 0.7134.
  On the other hand, stop loss should always be taken into account accordingly. It will be beneficial to set the stop loss above the last bullish wave at the level of 0.7226.

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