Technical analysis of NZD/USD for June 01, 2017

Overview:

• The NZD/USD pair is in a bullish trend from the support levels of 0.7001 and 0.7053. Hence, the first and second support levels are seen at 0.7053 and 0.7001 respectively.
  Currently, the price is in a strong bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), major support is seen at 0.7005, which coincides with a golden ratio (61.8% of Fibonacci retracement levels). Consequently, the second support is set at the level of 0.7001. So, the market is likely to show signs of a bullish trend around the spot of 0.7001/0.7053. In other words, buy orders are recommended above the level of 0.7053 with the first target at the level of 0.7121. Furthermore, if the trend is able to breakout through the first resistance level of 0.7121, we should see the pair climbing towards the second resistance (0.7166) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 0.7001.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of NZD/USD for June 01, 2017