FX.co ★ Technical analysis of NZD/USD for January 11, 2016

NZD/USD is in the downtrend. The pair has broken below its key level at 0.6590. The previous support should now play a strong resistance, which is likely to limit any upward attempts. Furthermore, both the 20-period and 50-period moving averages are turning down, confirming a negative outlook. The relative strength index has broken down its 30 level. In these perspectives, as long as 0.6610 holds on the upside, look for a new pullback to 0.6490 and 0.6445 in extension.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6490. A break of that target will move the pair further downwards to 0.6445. The pivot point stands at 0.6590. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6610 and the second target at 0.6645.

Resistance levels: 0.6610, 0.6645, 0.6670

Support levels: 0.6490, 0.6445, 0.64