NZD/USD is expected to trade in a downtrend. The pair is currently testing its nearest key support at 0.6650, and it seems more likely to break below this threshold in the coming trading hours. The 50-period moving average plays a resistance role and should continue pushing prices lower. Besides, the relative strength index is mixed to bearish. Hence, a break below 0.6650 would trigger a drop towards 0.6590.
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 0.6590. A break of that target will move the pair further downwards to 0.6560. The pivot point stands at 0.6650. 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 0.6710 and the second target at 0.6760.
Resistance levels: 0.6710, 0.6760, 0.6790
Support levels: 0.6590, 0.6560, 0.6525
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 07, 2016 . Thanks for your support.
No comments:
Post a Comment