FX.co ★ Technical analysis of NZD/USD for July 3, 2015

Overview:

• The key level has set at 0.6797 because it is representing the bearish wave in the H1 chart. Therefore, this level is going to act as the strong resistance diring the first week of July, 2015. As it is known, history will probably repeat itself at this level. According to the previous events, the NZD/USD pair is still moving between 0.6797 and 0.6661. Consequently, sell at 0.6797 with the first target at 0.6703, then it will continue towards 0.6661 in order to test the weekly double bottom. On the other hand, if the trend fails to close below the pivot point at the level of 0.6661 in the daily time frame. Hence, buy above 0.6661 with a target at 0.6790 in the short term. It should also be noticed that the level of 0.6750 represents minor resistance .Review the market volatility before investing because the sight price may have already been reached and the recent scenario might have become invalidated.

Tips:

• It should be noted that if there is no significant news to influence, the price will be moving from pivot point to resistance 1 or support 1. But if there is significant news to influence, the price will go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.