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 a broken downtrend line. Hence, a strong bullish rejection and a valid buy entry were expected in the zone of 0.6400-0.6380.
Last week, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.
Note that another bullish closure above 0.6500 allows a quick bullish movement towards 0.6600 to occur.
However, on Friday, a lower high has been expressed off the price level of 0.6530. This enhances the bearish side of the market and probably brings the NZD/USD pair again towards the depicted support level at 0.6400.
On the other hand, the price zone of 0.6400-0.6370 remains a significant support zone to be watched for another buy entry if further bearish pressure persists below 0.6500.
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 25, 2016 . Thanks for your support.
No comments:
Post a Comment