09.09.201607:28 Forex Analysis & Reviews: Technical analysis of NZD/USD for September 09, 2016

Long-term review

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NZD/USD is under pressure. The pair reversed down after the validation of an intraday "double top" pattern. 0.7485 (Sept 7 & 8 tops) represents a key resistance, and the upside potential should be limited by this level. Meanwhile, the 50-period moving average is heading downward. To conclude, as long as 0.7485 holds on the upside, the pair is likely to drop to 0.7350 at first, if breakout, look for further decline to 0.7295 as possible.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7350. A break below this target will move the pair further downwards to 0.7295. The pivot point stands at 0.7485. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7350 and the second one, at 0.7295.

Resistance levels: 0.7530, 0.7560, 0.7595

Support levels: 0.7350, 0.7295, 0.7255

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