FX.co ★ Technical analysis of NZD/USD for July 27, 2016

Overview:

• The NZD/USD pair was trading around the area of 0.7090-0.7050 two days ago. Today, the level of 0.7093 represents a weekly pivot point in the H1 time frame. The pair has already formed minor resistance at 0.7093 and the strong resistance is seen at the level of 0.7182 because it represents a golden ratio (61.8% of Fibonacci). So, major resistance is seen at 0.7182, while immediate resistance is found at 0.7093.
• If the pair closes below the weekly pivot point of 0.7093, the NZD/USD pair may resume its movement to 0.6995. From this point, we expect the NZD/USD pair to move between the levels of 0.7093 and 0.6995. Equally important, the RSI is still calling for a strong bearish market. But also it should be noted that the current price is also above the moving average 100, for that it is recommended to be careful while placing orders in this zone. As a result, sell below the weekly pivot point of 0.7093 with targets at 0.6995 and 0.6951 in order to form a double bottom. On the other hand, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 0.7200. If the NZD/USD pair succeeds to break through the weekly pivot point level of 0.7093 today, the market will move upwards continuing the development of the bullish trend to the level 0.7183.