Technical analysis of NZD/USD for January 05, 2016

Overview:

• The NZD/USD pair has been moving in a downtrend since last week. So, according to prior events, the price of the NZD/USD pair has still been moving between the ratio of 23.6% Fibonacci retracement levels at the level of 0.6728 and 00% Fibonacci retracement at the 0.6681 level. Furthermore, the price opened below the ratio of 23.6% Fibonacci retracement levels (0.6728). Besides, the resistance is set at the 0.6730 level today. Therefore, it will be a good sign to sell below the level of 0.6730 with the first target of 0.6680. The double bottom has already been set at the price of 0.6680. However, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.6680, the market will lead to a further decline to 0.6660 in order to indicate a correctional movement at this level. Meanwhile, the H1 chart represents a strong support at 0.6680 which forms the double bottom.

Trading recommendations:

• According to previous events, the price of the NZD/USD pair has still been moving between 0.6730 and 0.6680.
• Look for further downside with the 0.6680 and 0.6660 targets below the level of 0.6730.

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