FX.co ★ Technical analysis of NZD/USD for February 12, 2016

Overview:

• TThe NZD/USD pair movement was debatable as it took place in a narrow sideways channel for a while. The market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.6564 and 0.6747. The daily resistance and support are seen at the levels of 0.6747 and 0.6564 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel has completed. On the H4 chart, the price spot of 0.6747 remains a significant resistance zone. Therefore, there is a possibility that the NZD/USD pair will move to the downside and the fall structure does not look corrective. Resistance is seen at the level of 0.6747 today. So, sell below 0.6747 with the first target at 0.6564 to test yesterday's bottom. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.6747. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.6747, the market will decline further to 0.6473. However, it would also be sage to consider where to place a stop loss; this should be set above the second resistance of 0.6817.

Intraday technical levels:

• R3: 0.6880
• R2: 0.6817
• R1: 0.6747
• PP: 0.6664
• S1: 0.6564
• S2: 0.6473
• S3: 0.6410