Technical analysis of NZD/USD for January 19, 2017

Overview:

The NZD/USD pair continues to move upwards from the levels of 0.7095 and 0.7157. The NZD/USD pair didn't make any significant movements. There are no changes in our technical outlook. The bias remains bullish in the nearest term testing 0.7238 or higher. The pair rose from the level of 0.7095 to a top around 0.7180. The first support level is seen at 0.7157 followed by 0.7095, while daily resistance 1 is seen at 0.7194. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7157 and 0.7238. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100).

On the four-hour chart, immediate resistance is seen at 0.7194. Therefore, if the trend is able to break out through the first resistance level of 0.7194, we should see the pair climbing towards the daily resistance at 0.7238 to test it. It would also be wise to consider where to place stop loss; this should be set below the second support of 0.7049.