17.05.201802:52 Forex Analysis & Reviews: Technical analysis of NZD/USD for May 17, 2018

Overview:

The pivot point is seen at the point of 0.6917. The NZD/USD pair has faced strong resistance at the levels of 0.6935 because support had become resistance this week. So, the strong resistance has been already formed at the level of 0.6935 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.6935, the market will indicate a bearish opportunity below the new strong resistance level of 0.6935 (the level of 0.6935 coincides with a ratio of 23.6% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50). Thus, the market is indicating a bearish opportunity below 0.6935 so it will be good to sell at 0.6935 with the first target of 0.6869. It will also call for a downtrend in order to continue towards 0.9896. The daily strong support is seen at 0.6844. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.6974 (61.8% Fibonacci retracement levels).