FX.co ★ Technical analysis of NZD/USD for May 31, 2018

The NZD/USD pair continues to move upwards from the level of 0.6939. Yesterday, the pair rose from the level of 0.6939 (the level of 0.6939 coincides with a ratio of 61.8% Fibonacci retracement) to a top around 0.6985. Today, the first support level is seen at 0.6939 followed by 0.6924, while daily resistance 1 is seen at 0.7019. According to the previous events, the NZD/USD pair is still moving between the levels of 0.6939 and 0.7019; for that, we expect a range of 80 pips (0.7019 - 0.6939). On the one-hour chart, immediate resistance is seen at 0.9928, which coincides with a ratio of 50% 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. The price is still above the moving average (100) and (50), Therefore, if the trend is able to break out through the first resistance level of 0.7019, we should see the pair climbing towards the daily resistance 2 at 0.7042 to test it. It would also be wise to consider where to place stop loss; this should be set below the second support of 0.6924.