22.11.201612:19 Forex Analysis & Reviews: Technical analysis of NZD/USD for November 22, 2016

Overview:

• The NZD/USD pair continues to move downwards from the level of 0.7082 to bottomed at 0.6983. Last week, the pair dropped from the level of 0.7082 to the low around 0.6983. But the pair has rebounded from the bottom of 0.6983 to close at 0.7070 yesterday. Today, the first support level is seen at 0.7032, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong resistance at the levels of 0.7032 and 0.6983 which coincides with the double bottom. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling an upward trend. As a result, if the NZD/USD pair is able to break out the first resistance at 0.7082, the market will rise further to 0.7141 in order to test the daily resistance 2. Consequently, the market is likely to show signs of a bullish trend. So, it will be good to buy above the level of 0.7032 with the first target at 0.7082 and further to 0.7143. However, stop loss is to be placed below the level of 0.6983 (the double bottom).