FX.co ★ Technical analysis of NZD/USD for June 28, 2016

Overview:

• The 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 0.7131 and 0.6962. The daily resistance and support are seen at the levels of 0.7131 and 0.6962 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. So, the strong support has been already faced at the level of 0.6962 and the pair is likely to try to approach it in order to test it again and form a double bottom. Hence, the USD/CHF pair is continuing to trade in a bullish trend from the new support level of 0.6962; to form a bullish channel. Then, we may anticipate potential testing of 0.7130 (50% of Fibonacci Expansion) to take place soon. Moreover, if the pair succeeds in passing through the level of 0.7130, the market will indicate a bullish opportunity above the level of 0.7170. A breakout of that target will move the pair further upwards to 0.7227. However, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss below the last bearish wave at the level of 0.6904.