Trading recommendation:
- According to the previous events, the NZD/USD pair has still trapped between the level of 0.7176 and 0.7372 in the daily chart.
- Strong resistance will be formed at the level of 0.7372, providing a clear signal for sell deals with a target seen at 0.7176 in order to test the double bottom. Stop loss is to be placed above 0.7401.
- Strong support will be formed at the level of 0.7180 providing a clear signal for buy deals with a target at 0.7280.
Observations:
- The weekly resistance will be set at the level of 0.7280. Also, it should be noted that the double top is expected at 0.7372.
- The weekly support is seen at 0.7180. Also, the double bottom is expected at 0.7176.
- If the trend is upward, the strength of the currency pair will be defined as following: NZD is in uptrend and USD is in downtrend.
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a range trade; it looks like the trend is trapping and going up or down. If you sell or buy for a long term in this period, you will surely lose your profit.
For detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of NZD/USD for May 27, 2015 . Thanks for your support.
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