FX.co ★ Technical analysis of NZD/USD for July 20, 2016

Overview:

• The NZD/USD pair continues moving downwards from the level of 0.7083. Yesterday, the pair dropped from the level of 0.7083 to the bottom around 0.7009. Today, the first resistance level is seen at 0.7083 followed by 0.7129 (the weekly pivot point), while daily support 1 is found at 0.6966. Also, the level of 0.7129 represents a weekly pivot point for that it is acting as major resistance/support this week.
• Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.7083 towards the first support level at 0.7009 in order to test the double bottom. If the pair succeeds to pass through the level of 0.7009, the market will indicate a bearish opportunity below the level of 0.7009. Hence, if the NZD/USD pair is able to break out the bottom at 0.7009, the market will decline further to 0.6966. However, if a breakout happens at the resistance level of 0.7129, then this scenario may be invalidated.

Intraday technical levels:

• R3: 0.7167
• R2: 0.7131
• R1: 0.7083
• PP: 0.7046
• S1: 0.7009
• S2: 0.6966
• S3: 0.6910