Technical Analysis of NZD/USD for March 31, 2016
Overview:
- The NZD/USD pair faced resistance at the level of 0.7000, while minor resistance is seen at 0.6964. Support is found at the levels of 0.6899 and 0.6847. Pivot point has already been set at the level of 0.6899. Equally important, the NZD/USD pair is still moving around the key level at 0.6899, which represents a daily pivot in the H4 time frame at the moment. Yesterday, the NZD/USD pair continued moving upwards from the level of 0.6847. The pair rose to the top around 0.6920 from the level of 0.6847 (coincides with the ratio of the 78.6% Fibonacci retracement). In consequence, the NZD/USD pair broke resistance, which turned into strong support at the level of 0.6847. The level of 0.6847 is expected to act as the major support today. We expect the NZD/USD pair to continue moving in the bullish trend towards the target level of 0.6964 so as to test the yesterday's double top. If the trend breaks the resistance level of 0.6964, the pair is likely to move upwards continuing the bullish trend development to the level of 0.7000.
- On the downtrend: If the pair fails to pass through the level of 0.6964, the market will indicate a bearish opportunity below the level of 0.6964. So, the market will decline further to 0.6847 and 0.6755 to return to the daily support. Moreover, a breakout of that target will move the pair further downwards to 0.6690.
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