FX.co ★ Technical analysis of NZD/USD for April 29, 2016

Overview:

• The NZD/USD pair is still moving between the levels of 0.6914 and 0.6994. The NZD/USD pair broke resistance, which turned into strong support at the level of 0.6914 yesterday. The level of 0.6901 coincides with 38.2% of Fibonacci, which is expected to act as major support today. Since the trend is above the 38.2% Fibonacci level, the market is still in an uptrend. From this point, the NZD/USD pair is continuing in a bullish trend from the new support of 0.6914. Currently, the price is in a bullish channel. According to the previous events, we expect the NZD/USD pair to move above the support of 0.6914 towards the first resistance at 0.9694. On the H1 chart, resistance is seen at the levels of 0.9694 and 0.7056. Also, it should be noticed that the level of 0.6914 represents the daily pivot point. Therefore, the level of 0.6914 provids a clear signal to buy with the targets seen at 0.9694. If the trend breaks the support at 0.9694 (first resistance) the pair will move upwards continuing the development of the bullish trend to the level of 0.7056. However, stop loss is to be placed below the level of 0.6900.