FX.co ★ Technical analysis of NZD/USD for October 18, 2016

Overview:

• The NZD/USD pair fell from the level of 0.7140 to the bottom around 0.7034. But the pair has rebounded from the bottom of 0.7034 to climb at 0.7181.
• Today, the first resistance level is seen at 0.7205, and the price is moving in a bullish channel now.
• Furthermore, the price has been set above the strong support at the level of 0.7140, which coincides with the 23.6% Fibonacci retracement level.
• This support has broken easily this morning. Additionally, the RSI starts signaling an upward trend.
• As a result, if the NZD/USD pair is able to break out the first resistance at 0.7205, the market will rise further to 0.7259 in order to test the weekly resistance 1.
• In the H4 time frame, the pair will probably go up because the uptrend is still strong after breaking some major resistance this morning.
• Consequently, the market is likely to show signs of a bullish trend. So, it will be good to buy above the level of 0.7140-0.7080 with the first target at 0.7206 and further to 0.7259 or higher.
• At the same time, the breakdown of 0.7140 will allow the pair to go further down to the levels of 0.7034 in order to retest the double bottom again.