NZD/USD is expected to move downwards. The pair remains under pressure below its nearest resistance at 0.6495. Both the 20-period and 50-period moving averages are heading downwards acting resistance roles. Besides, the relative strength index is turning down below its neutrality area of 50. In this case, as long as 0.6495 is not surpassed, further decline is more likely to occur to 0.6410 and 0.6370.
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 0.6410. A break of that target will move the pair further downwards to 0.6350. The pivot point stands at 0.6495. 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 0.6520 and the second target at 0.6550.
Resistance levels: 0.6520,0.6550, 0.6610
Support levels: 0.6410, 0.6350, 0.63
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 26, 2016 . Thanks for your support.
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