Technical analysis of NZD/USD for January 27, 2017

Overview:

• The NZD/USD pair is likely to continue straight from the level of 0.7276.
• Support at 0.7208 coincides with ratio of 78.6% Fibonacci retracement level .
• Additionally, it is probably tend to form a double bottom at the same level.
• Therefore, the NZD/USD pair shows signs of strength following the break through the highest levels of 0.7276.
• So, it is going to be a good sign to buy above the support levels of 0.7276 with the first target at 0.7315. If the trend can break the point of 0.7315, it will continue towards the next target of 0.7350.
• On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level at 0.7208, the pair will be led to a further decline to 0.7155 and 0.7118 in order to indicate the bearish market. But overall, we still confirm the bullish scenario as the trend is still above the major support of 0.7155.

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