FX.co ★ Technical analysis of NZD/USD for August 27, 2015

Overview:

• The NZD/USD pair has broken major support at the level of 0.6589. Additionally, it should be noted that the price had opened below the major resistance this week. Moreover, the weekly pivot point calculated at 0.6497 this week and it is now approaching from it in order to test it. Therefore, it will probably start downside movement at this area and recover again. So, the market will indicate a bearish opportunity above the weekly pivot point (0.6497) for that it will be a good sign to sell at this spot with the first target at 0.6430 and continue towards 0.6366 (38.2% Fibonacci retracement levels). On other hand, if there a break takes place at 0.6595, it will be a good location for stop loss.

Notes:

• The daily support will set at the level of 0.6366.
• The major resistance is going to set at the 0.6589.
• We saw an insignificant range of 62 pips yesterday because the volatility was not high. But, we expect a large range of 89 pips in coming hours.