06.05.201611:41 Forex Analysis & Reviews: Technical analysis of NZD/USD for May 06, 2016

Overview:

The NZD/USD pair was trading in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.6872 and 0.6815. Resistance and support are seen at the levels of 0.6872 (also, the double top is set at the point of 0.6880) and 0.6815 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel is completed. The current price is seen at 0.6842, which represents the key level today. The level of 0.6872 will act as the first resistance today. Hence, if the price fails to pass through the level of 0.6633, the market will indicate a bearish opportunity below the strong resistance level of 0.6872. Sell deals are recommended below the level of 0.6872 with the first target at 0.6815. If the trend breaks the support level of 0.6815, the pair is likely to move downwards continuing the development of the bearish trend to the levels of 0.6758 and 0.6688. On the contrary, in case a reversal takes place, and the NZD/USD pair breaks through the resistance level of 0.6900, then a stop loss should be placed at 0.6943