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

Overview:

• The NZD/USD pair broke resistance which turned to strong support at the level of 0.7037 yesterday. The level of 0.7037 is expected to act as major support today. From this point, we expect the NZD/USD pair to continue moving in a bullish trend from the support levels of 0.7037 and 0.7134. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Today, the first support level is seen at 0.7070 followed by 0.7037, while daily resistance 1 is found at 0.7134. Besides, the level of 0.7134 represents a weekly pivot point for that it is acting as major resistance. Hence, the NZD/USD pair continues to move upwards from the level of 0.7040. Amid the previous events, the pair is still in a uptrend, because the NZD/USD pair is trading in a bullish trend from the new support line of 0.7070 towards the first resistance level at 0.7134 in order to test it. If the pair succeeds to pass through the level of 0.7134, the market will indicate a bearish opportunity below the level of 0.7177 (61.8% Fibonacci retracement). However, if a breakout happens at the support level of 0.7030, then this scenario may be invalidated.