Technical analysis of NZD/USD for January 12, 2017

Overview:

The NZD/USD pair continues to move upwards from the level of 0.7049. Yesterday, the pair rose from the level of 0.7049 to a top around 0.7130. Today, the first resistance level is seen at 0.7157 followed by 0.7194, while daily support 1 is seen at 0.7094 (61.8% Fibonacci retracement). According to the previous events, the NZD/USD pair is still moving between the levels of 0.7094 and 0.7194; so we expect a range of 100 pips. Furthermore, if the trend is able to break out through the first resistance level at 0.7157, we should see the pair climbing towards the second resistance of 0.7094. Therefore, buy above the level of 0.7094 with the first target at 0.7157 in order to test the daily resistance 1 and further to 0.7094. Besides, it might be noted that the level of 0.7238 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.7094, a further decline to 0.7049 can occur which would indicate a bearish market.