Technical analysis of NZD/USD for February 08, 2018

Overview:

• The NZD/USD pair.
• The bias remains bullish in the nearest term testing 0.7437 or higher. The NZD/USD pair is climbing from the area of 0.7305/0.7202 in the long term. It should be noted that the support is established at the level of 0.7305 which represents the daily pivot point on the daily chart. The price is likely to form a double bottom in the same time frame. The NZD/USD pair is showing signs of strength following a breakout of the highest level of 0.7305. So, buy above the level of 0.7202 with the first target at 0.7364 in order to test the daily resistance 1. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests that the pair will probably go up in the coming hours. If the trend is able to break the level of 0.7364, then the market will call for a strong bullish market towards the target of 0.7437. The level of 1.4250 is a good place to take profits today. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the level of 0.7305 (pivot point), a further decline to 0.7202 can occur. It would indicate a bearish market.

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