FX.co ★ Technical analysis of NZD/USD for August 10, 2016

Overview:

• The NZD/USD pair continues moving in a bullish trend from the support levels of 0.7076 and 0.7185. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.7185, which coincides with a golden ratio (78.6% of Fibonacci). Consequently, the first support is set at the level of 0.7185. So, the market is likely to show signs of a bullish trend around the spot of 0.7185. In other words, buy orders are recommended above the golden ratio (0.7185) with the first target at the level of 0.7247. Furthermore, if the trend is able to break through the first resistance level of 0.7247. We should see the pair climbing towards the double top (0.7324) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 0.7076.

Intraday technical levels:

• R3: 0.7400
• R2: 0.7324
• R1: 0.7247
• PP: 0.7185
• S1: 0.7076
• S2: 0.7000
• S3: 0.6923