FX.co ★ Technical analysis of NZD/USD for June 24, 2016

Overview:

• The NZD/USD pair continues to move downwards from the level of 0.7273. Yesterday, the pair dropped from the level of 0.7273 to the bottom around 0.6977. But the pair has rebounded from the bottom of 0.6977 to close at 0.7066. Today, the first resistance level is seen at 0.7130, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 0.7130, which coincides with the 38.2% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. So, the daily support is seen at 0.7034. As a result, if the NZD/USD pair is able to break out the first support at 0.7034, the market will decline further to 0.6962 in order to test the double bottom in the H1 time frame. Consequently, the market is likely to show signs of a bearish trend. Thus, it will be good to sell below the level of 0.7107 with the first target at 0.6962 and further to 0.6904. However, stop loss is to be placed above the level of 0.7160.

Forecast:

• Sell deals are recommended below the level of 0.7107 with the first target at 0.7034 . If the trend breaks the support level of 0.7034, the pair is likely to move downwards continuing the development of a bearish trend to the level 0.6962 and 0.6904..