Technical analysis of NZD/USD for April 13, 2016

Overview:

• The NZD/USD pair set above strong support at the level of 0.6886, which coincides with the 61.8% Fibonacci retracement level.
• This support was rejected for four times confirming uptrend veracity.
• Hence, major support is seen at the level of 0.6822 because the trend is still showing strength above it.
• Accordingly, the pair is still in the uptrend from the area of 0.6822 and 0.6886.
• The NZD/USD pair is trading in a bullish trend from the last support line of 0.6822 towards the first resistance level at 0.6967 in order to test it.
• This is confirmed by the RSI indicator signaling that we are still in the bullish trending market.
• Now, the pair is likely to begin an ascending movement to the point of 0.6940 and further to the level of 0.6967 to reach the double top in the H1 time frame.
• The level of 0.6940 will act as minor resistance, and the double top is set at the point of 0.6967.
• At the same time, if a breakout happens at the support level of 0.6822, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.

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