Technical analysis of NZD/USD for March 23, 2017

Overview:

The NZD/USD pair is still moving around the area of 0.7075. Today, the level of 0.7075 represents the double top. The pair has already formed minor resistance at 0.7004 and the strong resistance is seen at the level of 0.7075 because it represents the weekly resistance 1. So, major resistance is seen at 0.7004, while immediate support is found at 0.6889. If the pair closes below the price of 0.6889, the NZD/USD pair may resume its movement to 0.6850 to test the daily support 2.

We foresee the NZD/USD pair to move between the levels of 0.7004 and 0.6850. The RSI is still calling for a strong bearish market. The current price is also below the moving average 100. As a result, sell below the double top of 0.7004 with targets at 0.6869 and 0.6850. However, stop loss should always be taken into account; accordingly, it will be useful to set the stop loss above the last bullish wave at the level of 0.7075.