06.10.201611:43 Forex Analysis & Reviews: Technical analysis of NZD/USD for October 06, 2016

Overview:

• The NZD/USD pair didn't make any significant movements yesterday. There are no changes in our technical outlook. The bias remains bearish in the nearest term testing 0.7100 or lower. the NZD/USD pair continues to move downwards from the level of 0.7238. Yesterday, the pair dropped from the level of 0.7238 (38.2% Fibonacci Expansion) to the bottom around 0.7120. Today, the first resistance level is seen at 0.7238 followed by 0.7332, while daily support 1 is seen at 0.7133. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7238 and 0.7133; for that we expect a range of 105 pips. If the NZD/USD pair fails to break through the support level of 0.7133, the market will decline further to 0.7086 in order to test the double bottom. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 0.7133 with a view to test the first support. However, the stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last resistance at 0.7238.