NZD/USD is turning down. The pair has accelerated its slide after breaking below the 20-period and 50-period moving averages, both of which have turned downward and should act as resistance. The relative strength index has just broken below its key level of 30 ("oversold"), but has not yet displayed any reversal signals. As long as 0.6530 holds on the upside, look for a further decline to 0.6465 and 0.6410.
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 0.6455. A break of that target will move the pair further downwards to 0.6410. The pivot point stands at 0.6530. 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 0.6550 and the second target at 0.6580.
Resistance levels: 0.6550, 0.6580, 0.6610
Support levels: 0.6455, 0.6410, 0.6375
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 28, 2016 . Thanks for your support.
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