FX.co ★ Technical analysis of NZD/USD for August 31, 2016

Overview:

• The NZD/USD pair has faced strong resistance at the level of 0.7288 because support had become resistance this week. So, the strong resistance has been already formed at the level of 0.7288 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 0.7288, the market will indicate a bearish opportunity below the new strong resistance level of 0.7288. Additionally, the price is in a bearish channel now. Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100). Thus, the market is indicating a bearish opportunity below 0.7288, for that it will be good to sell at 0.7288 with the first target of 0.7216. It will also call for a downtrend in order to continue towards 0.7166. The daily strong support is seen at 0.7166. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.7300.

Intraday technical levels:

• R2: 0.7330
• R1: 0.7287
• PP: 0.7250
• S1: 0.7216
• S2: 0.7166