Technical Analysis of NZD/USD for March 17, 2016
NZD/USD is expected to trade in a higher range. The pair jumped above its previous resistance at 0.6705, which now acts as support. The upside potential has been opened towards 0.6805. In addition, the immediate trend is up, and the momentum is strong, as the relative strength index broke above its neutrality area at 50, and is well directed now. Hence, as long as 0.6705 is not broken, the pair is likely to advance to 0.6805 and 0.6850 in extension.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.6805 and the second one at 0.6850. In the alternative scenario, a short position is recommended with the first target at 0.6660 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6620. The pivot point is at 0.6705.
Resistance levels: 0.6805, 0.6850, 0.69
Support levels: 0.666, 0.6620, 0.6570
The material has been provided by InstaForex Company - www.instaforex.com
