16.08.201611:40 Forex Analysis & Reviews: Technical analysis of NZD/USD for August 16, 2016

Overview:

• The NZD/USD pair broke resistance which turned to strong support at the level of 1.0120 yesterday. The level of 0.7245 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as major support today. The Relative Strength Index (RSI) is considered overbought because it is above 70. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100). This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.7280 with the first target at the level of 0.7313. From this point, the pair is likely to begin an ascending movement to the point of 0.7313 and further to the level of 0.7343. The level of 0.7340 will act as strong resistance and a double top is already set at the point of 0.7343. Also, it might be noted that the level of 0.7343 is a good place to take profit because it will form a double top. On the other hand, if the NZD/USD pair fails to break through the resistance level of 0.7343 today, the market will decline further to 0.7245 to retest it again.