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

Overview:

• The NZD/USD pair was trading around the area of 0.7140 a day ago. Today, the level of 0.7149 represents a weekly pivot point in the H1 time frame. The pair has already formed minor resistance at 0.7177 and the strong resistance is seen at the level of 0.7216 because it represents the weekly resistance 1. So, major resistance is seen at 0.7216, while immediate support is found at 0.7122. If the pair closes below the weekly pivot point of 0.7149, the NZD/USD pair may resume it movement to 0.7122 to test the weekly support 1. From this point, we expect the NZD/USD pair to move between the levels of 0.7177 and 0.7122. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. As a result, sell below the weekly pivot point of 0.7149 with targets at 0.7122 and 0.7108 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 0.7216.