NZDUSD Daily analysis for February 25, 2016
Daily analysis of NZDUSD for February 25, 2016
NZDUSD’s moving range is shrinking. The pair is still in uptrend with a strong upward support line. The current price is at Fibonacci level 23.6; the last bounce was at Fibonacci level 38.2 and the 2 bounces before were around level 50. This is showing strong buying strength and the pair has failed to pass the Fibonacci level 50 two times. After failing to pass Fibonacci level 50 the second time, NZDUSD has bounced back strongly and passed level 23.6 till the resistance and pulled back to level 38.2. The uptrend is still continuing but the moving range keeps reducing and that is the signal the uptrend is about to complete. The pair is expected to retest the resistance again, RSI level will be at overbought zone at the same time.
On the chart D1, the distances of the supports and the resistances are clearly different. Resistances are closer than the supports. This proves the strong buying strength but the closer price rallies to the resistance level, the weaker buying strength becomes. NZDUSD has tested the resistance around 0.67296 3 times and not yet broken it. With the strong support of the buying strength, the pair is expected to retest the resistance again at 0.67296. If the pair breaks out successfully, the next resistance is around 0.67871. On the contrary, the failure of the break out will result in the slipping of the price; the pair might reach the support around 0.65491.
Daily chart’s resistance levels: 0.67296 / 0.67871
Daily chart’s support levels: 0.65491 / 0.64032
H4 chart’s resistance levels: 0.67219/ 0.67475
H4 chart’s support levels: 0.66093 / 0.65950
Trading recommendations for today: NZDUSD trend reversal is about to happen as the uptrend is becoming exhaustive. It is safe to enter the trade with sell order (short) at two resistance levels at 0.67296 and 0.67871. Take profit at 0.66568, Stop loss at 0.68503.