FX.co ★ Technical analysis of NZD/USD for March 16, 2016

After an extended range trading between 0.6600 and 0.6570, on the 4th of March, the price broke above the descending channel, suggesting potential for further growth.

Although the channel was broken, the price corrected down sharply to re-test major support at around 0.6600. At the same time, the 200 Moving Average acted as a strong support at the same price area. The Fibonacci applied to the channel breakout point is pointing out to the 38.2% Fibs (R3) as a potential target for an upside movement as it was not tested after the breakout.

Consider buying NZD/USD when the price is near S1 (0.6600) targeting one of the resistance levels, R1, R2, or R3, as a final target. Stop loss should be just below S2 (0.6535)

Support: 0.6600, 0.6535

Resistance: 0.6650, 0.6750, 0.6840