NZD/USD is turning upwards hitting its strong support area around 0.6345. The 20-period moving average has clearly reversed up, and also broken above the 50-period one generating a positive signal. The relative strength index is well directed above its 70% area, which suggests that the pair may be overbought at the current stage. Nevertheless, as long as 0.6385 (our stop loss) is not broken, a further advance to 0.6475 and 0.6510 is expected.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.6475 and the second target at 0.6510. In the alternative scenario, short positions are recommended with the first target at 0.6345 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6300. The pivot point is at 0.6385.
Resistance levels: 0.6475,0.6510, 0.6540
Support levels: 0.6345, 0.63, 0.6275
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 21, 2016 . Thanks for your support.
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