FX.co ★ Technical analysis of NZD/USD for May 12, 2016

Overview:

• The NZD/USD pair has faced strong support at 0.6794 as the resistance turned into support. Thus, the strong support is seen at 0.6794, and the pair is likely to approach it in order to test it again. Additionally, the level of 0.6794 represents a daily pivot point as it is acting as major support now. Furthermore, the NZD/USD pair is continuing to trade in a bullish trend from the new support level at 0.6794. Currently, the price is in a bullish channel. According to the previous events, we expect the NZD/USD pair to move between 0.6794 and 0.6882. Additionally, the RSI is still signaling that the trend is upward as it remains far above the moving average (100). This suggests the pair will probably go up in coming hours. Therefore, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.6794 with the first target at 0.6843. If the trend is able to break the double top at 0.6843, then the market will continue rising towards the weekly resistance 1 at 0.6882.