NZD/USD Overview:
On December 30, a significant bearish rejection took place around the level of 0.6840 (daily resistance level) similar to what happened previously on October 23.
Moreover, a daily closure below 0.6750 allowed a quick bearish decline to occur initially towards the level of 0.6500, which was broken to the downside as well.
The depicted chart illustrates a double-top reversal pattern. The depicted support level at 0.6430 should be broken downwards in order to confirm the reversal pattern.
However, Traders should note that the level of 0.6400-0.6350 constitutes a significant support zone, which corresponds to the backside of the broken downtrend line.
Hence, both a strong bullish rejection and a valid buy entry were expected in the zone of 0.6400-0.6380. Significant bullish rejection was manifested on the daily chart yesterday (a bullish daily hammer candlestick).
Today, bullish persistence above 0.6430 and 0.6490 is mandatory to push the pair towards higher bullish targets.
On the other hand, a bearish daily closure below 0.6400 opens the way towards 0.6250 again (multiple previous bottoms).
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on daily market trends and news you may visit via NZD/USD intraday technical levels and trading recommendations for January 21, 2016 . Thanks for your support.
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