20.10.201611:53 Forex Analysis & Reviews: Technical analysis of NZD/USD for October 20, 2016

Overview:

• The NZD/USD pair continued to move upwards from the level of 0.7145. Since the market opened this week, the pair rose from the level of 0.7145 (the level of 0.7145 coincides with the ratio of 38.2% Fibonacci Expansion) to the top around 0.7261. In consequence, the NZD/USD pair broke resistance at 0.7145, which turned into strong support. In the H4 time frame, the level of 0.7145 is expected to act as major support today. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still above the moving average (100). From this point, we expect the NZD/USD pair to continue moving in the bullish trend from the support level of 0.7145 towards the target level of 0.7210. If the pair succeeds in passing through the level of 0.7210, the market will indicate the bullish opportunity above the level of 0.7210so as to reach the second target at 0.7261. Also, it should be noted that the major resistance is seen at the price of 0.7315. At the same time, if the NZD/USD pair is able to break out the level of 0.7200, the market will decline further to 0.7145 (daily support 2).