17.08.201613:31 Forex Analysis & Reviews: Technical analysis of NZD/USD for August 17, 2016

Overview:

• The NZD/USD pair hit the weekly resistance 1 yesterday. But, it dropped down in order to bottom at the point of 0.7275. Today, the pair is trading above its pivot point. It is likely to trade in a higher range as long as it remains above the level of 0.7192 (61.8% Fibonacci retracement). Hence, the major support was already set at the level of 0.7192. Moreover, the double bottom is also coinciding around the major support today. Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100. Therefore, it will be advantageous to buy above the current level of 0.7192 with the first target at 0.7258 in order to retest the weekly resistance 1. From this point, if the pair closes above the weekly resistance 1 of 0.7258 on the H4 chart, the USD/CHF pair may resume its movement to 0.7342 to form a double top. Moreover, it should be noted that it is likely to trade in a higher range as long as it remains above the support (0.7192), which is expected to act as support today. Therefore, there is a possibility that the NZD/USD pair will move upwards and the structure does not look corrective. However, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bearish wave at 0.7192.