NZD/USD is under pressure as Key resistance at 0.6490. The pair remains under pressure below its nearest resistance at 0.6490, and is likely to post a new drop. The 20-period and 50-period moving averages are still on the downside. Besides, the relative strength index is turning down, and has just broken below its neutrality area at 50. Last but not least, the process of lower highs and lows remains intact, therefore, as long as 0.6490 is not surpassed, the risk of the break below 0.6365 (the previous swing low) remains high.
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 0.6540. A breakout of that target will move the pair further downwards to 0.6580. The pivot point stands at 0.6490. 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 0.6420 and the second target at 0.6365.
Resistance levels: 0.6540, 0.6580, 0.6610
Support levels: 0.6420, 0.6365, 0.6335
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 18, 2016 . Thanks for your support.
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