FX.co ★ Technical analysis of NZD/USD for May 04, 2016

Overview:

• The NZD/USD pair continues droping from the level of 0.6914 in the short term. It should be noted that the resistance is established at the level of 0.6914, which represents a daily pivot point on the H1 chart. The price is likely to form a double top in the same time frame. Accordingly, the NZD/USD pair is showing signs of strength following a breakout of the lowest level of 0.6880. So, sell below the level of 0.6880 with the first target at 0.6834 in order to test the daily support 1 and further to 0.6774. Also, it might be noted that the level of 0.6774 is a good place to take profit because it will form a double bottom today. Amid the previous events, the pair is still in a downtrend, because the NZD/USD pair is trading in a bearish trend from the new resistance line of 0.6914 towards the first support level at 0.6834 in order to test it. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.6914, then the trend will call for a strong bullish market from the level of 0.6914 towards the 0.6994 price.

Comment:

• Today, the first resistance level is seen at 0.6914 followed by 0.6994, while daily support 1 is found at 0.6834.