FX.co ★ Technical analysis of NZD/USD for August 25, 2016

Overview:

• The NZD/USD pair faced strong resistances at the levels of 0.7324 because the price of 0.7324 represents the double top in the H4 time frame. So, the strong resistance has been already formed at the level of 0.7324 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 0.7324, the market will indicate a bearish opportunity below the new strong resistance level of 0.7324. Thus, the market is indicating a bearish opportunity below 0.7330, for that it will be good to sell at 0.7330 with the first target of 0.7280. It will also call for a downtrend in order to continue towards 0.7243. The daily strong support is seen at 0.7243. However, the stop loss should always be taken into account, because the RSI starts signaling an upward trend, as the trend is still showing strength above the moving average (100). So, it will be reasonable to set your stop loss at the level of 0.7370.