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28.09.201613:20 Forex Analysis & Reviews: Technical analysis of NZD/USD for September 28, 2016

Long-term review

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Overview:

The NZD/USD pair fell pointedly from the level of 0.7323 towards 0.7238. Now, the price is set at 0.7245.
The resistance is seen at 0.7272 and 0.7323. Moreover, the price area of 0.7272 - 0.7323 remains a significant resistance zone.
Therefore, there is a possibility that the NZD/USD pair will move downside and the structure of a fall does not look corrective.
The trend is still below the 100 EMA, so the bearish outlook remains the same as long as the 100 EMA is headed to the downside.
Thus, amid the previous events, the price is still moving between the levels of 0.7272 and 0.7323.
If the NZD/USD pair fails to break through the resistance level of 0.7272, the market will decline further to 0.7223 as the first target.
This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs.
The pair is expected to drop lower towards at least 0.7161 to test the daily support 2.
On the contrary, if a breakout takes place at the resistance level of 0.7323, then this scenario may be invalidated.

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