For Traders

Analytical Reviews

Technical analysis

30.08.201611:31 Forex Analysis & Reviews: Technical analysis of NZD/USD for August 30, 2016

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Overview:

The NZD/USD pair faced strong resistances at the levels of 0.7287 because support became resistance.
So, the resistance is seen at 0.7287. The NZD/USD pair is showing signs of weakness following a breakout of the highest level of 0.7287.
Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.7287 towards the first support level at 0.7216 in order to test it.
Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 0.7287.
Therefore, the major resistance can be found at 0.7287 providing a clear signal to sell with a target seen at 0.7216. If the trend breaks the minor support at 0.7216, the pair will move downwards continuing the bearish trend development to the level of 0.7166 in order to test the daily support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 0.7287 today.
The bullish outlook remains the same as long as the 100 EMA is headed to the downside. Consequently, the level of 0.7287 remains a key resistance zone.
However, if a breakout happens at 0.7300, this scenario may be invalidated.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.