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

Overview:

• The NZD/USD pair continues moving upwards from the level of 0.7149.
• The pair rose from the level of 0.7149 which coincides with a ratio of 50% (Fibonacci retracement) to a top around 0.7177.
• The first support level is seen at 0.7149 followed by 0.7122/0.7089, while daily resistance 1 is seen at 0.7216.
• The price spots at 0.7122 and 0.7089 remain a significant support zone. Thus, the trend is still bullish as long as the level of 0.7089 is not breached.
• Amid the previous events, the NZD/USD pair is still moving between the levels of 0.7149 and 0.7216, so we expect a range of 67 pips (0.7216 - 0.7149).
• On the 1H chart immediate resistance is seen at 0.7177, which coincides with a ratio of 61.8% Fibonacci retracement.
• Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator, signaling that we are still in a bullish trending market.
• Therefore, if the trend is able to break out through the first resistance level of 0.7177, we should see the pair climbing towards the daily resistance at 0.7216 to test it.
• On the other hand, it would also be wise to consider where to place stop loss; this should be set below the second support of 0.7089.