22.01.201606:17 Forex Analysis & Reviews: NZD/USD intraday technical levels and trading recommendations for January 22, 2016

Long-term review

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On December 30, a significant bearish rejection took place around the level of 0.6840 (daily resistance level) similar to what happened previously on October 23.

Moreover, a daily closure below 0.6750 allowed a quick bearish decline to occur initially towards the level of 0.6500, which was broken to the downside as well.

The depicted chart illustrates a double-top reversal pattern. The depicted support level at 0.6430 should be broken downwards in order to confirm the reversal pattern.

However, traders should note that the level of 0.6400-0.6350 constitutes a significant support zone, which corresponds to the backside of a broken downtrend line.

Hence, a strong bullish rejection and a valid buy entry were expected in the zone of 0.6400-0.6380.

Significant bullish reaction has been manifested around 0.6380 (a bullish engulfing daily candlestick) on the daily chart earlier this week.

Today, bullish persistence above 0.6500 is mandatory to keep pushing the NZD/USD pair towards higher bullish targets.

On the other hand, a bearish daily closure below 0.6500 brings the pair again towards the level of 0.6420.

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