FX.co ★ Technical analysis of NZD/USD for January 23, 2015

Overview:

• The NZD/USD pair has set a strong support at the level of 0.7362 around the weekly double bottom. Also, be aware of the supports at 0.7430 and 0.7392. On the other hand, resistance has been already placed around the area of 0.7537, because minor resistance has been set at 0.7500; and the prices of 0.7530 and 0.7540 represent strong resistance. So, if the trend is of a downside character, the strength of the currency will be defined as following: NZD is in the downtrend and USD is in the uptrend. Therefore, sell below the level of 0.7537 which represents the weekly resistance with the first target at the 0.7430 price. Moreover, if the trend does not fail to close above the level of 0.7430, it will call for a downtrend to continue its bearish movement towards 0.7362 in order to test this strong resistance (it should be noted that the price of 0.7362 is going to form the weekly resistance and the double top at the same price). At the same time, the stop loss should be placed at the level of 0.7563.