04.02.201612:53 Forex Analysis & Reviews: Technical analysis of NZD/USD for February 04, 2016

Overview:

• The NZD/USD pair broke resistance which turned to strong support at the level of 0.6615 yesterday. The level of 0.6615 coincides with 50% of Fibonacci, which is expected to act as major support today. Since the trend is above the 50% Fibonacci level, it means the market is still in an uptrend. From this point, the USD/CHF pair is continuing in a bullish trend from the new support of 0.6615. Currently, the price is in a bullish channel. According to the previous events, we expect the NZD/USD pair to move between 0.6615 and 0.6768. On the H4 chart, resistance is seen at the levels of 0.6768 and 0.6819. Also, it should be noticed that, the level of 0.6678 represents the daily pivot point. Therefore, strong support will be formed at the level of 0.6615 providing a clear signal for buy deals with the targets seen at 0.6768. If the trend breaks the support at 0.6768 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level 0.6819 in order to test the daily resistance 2. However, stop loss is to be placed below the level of 0.6551.