FX.co ★ Technical analysis of NZD/USD for October 28, 2016

Overview:

• The market opened below the weekly resistance (0.7206). It continued to move downwards from the level of 0.7206 to the bottom around 0.7140. Today, the first resistance level is seen at 0.7206 followed by 0.7258, while daily support 1 is seen at 0.7089. The NZD/USD pair broke support which turned to strong resistance at 0.7206. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the resistance (0.7206) which is expected to act as major resistance today. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. Amid the previous events, the NZD/USD pair is still moving between the levels of 0.7206 and 0.7089. Therefore, the major resistance can be found at 0.7206 providing a clear signal to sell with a target seen at 0.7089. If the trend breaks the minor support at 0.7089, the pair will move downwards continuing the bearish trend development to the level of 0.7036 in order to test the double bottom in the 4H time frame. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 0.7206 - 0.7258 today.

Daily key levels:

• Resistance 2:0.7258
• Resistance 1:0.7206
• Intraday pivot point:0.7141
• Support:0.7089
• Support:0.7036