NZD/USD is under pressure. The pair failed to break above its nearest key resistance at 0.6820 after the recent tests, and remains under pressure below its falling 50-period moving average. At the current stage, the pair seems more likely to test its support at 0.6735 in the coming trading hours. The relative strength index is negative without showing any reversal signs. To sum up, as long as 0.6820 holds on the upside, look for a new pullback to 0.6735 and 0.6715 in extension.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6735. A break of that target will move the pair further downwards to 0.6715. The pivot point stands at 0.6820. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6845 and the second target at 0.6885.
Support levels: 0.67305, 0.6715, 0.6665
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 Technical analysis of NZD/USD for January 04, 2016 . Thanks for your support.
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