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NZD/USD

The New Zealand Dollar – U.S. dollar pair correlates with the stock markets around the world and the index level of fear marks a sharp decline in investor concerns.

At the technical level we see a marked upward trend, the pair has been detained by the second weekly resistance 0.8385, given that today is a weekend, there are fundamental data on the U.S. economy. It is important to take precautions due to market volatility.

We recommend you sell in (R_2) weekly. with a short-term objective 0.8178, just at the level of the uptrend line.

The Momentum indicator has entered into overbought area, there may be a change in trend.

The material has been provided by Instaforex Company – instaforex.com

EUR/USD made a strong bearish breakout of the bullish channel marked in brown with a Full Body Long bearish 4H candlestick marked on the chart.

Retesting of the broken channel took place this week failing to fixate within the broken channel again with possibility to be moving withing the newly formed bearish channel marked on the chart.

We should notice also the Head & Shoulders reversal pattern presented on the chart above which is a powerful reversal pattern formed at 38.2% Fibonacci level.

The view for the pair is still bearish as long as it’s consolidating within the newly formed bearish channel and below resistance area 1.3215-1.3235

Sellers should take profits at 1.3105, 1.3060 then 1.3000 with possible further targets to be mentioned later.

Bearish reaction towards the lower limit of the broken bullish channel & the upper limit of the bearish channel opens the way to the lower limit of the newly formed bearish channel at 1.3030 initially.

Price action towards 1.3030-1.3000 should be watched in order to determine the next target for the pair, as its break will lead to 1.2950 then 1.2880.

The material has been provided by Instaforex Company – instaforex.com

Strong Support: 0.8520.

Strong Resistance: 0.8230.

Trading Recommendations:

According to previous events, the price will be trapped between 0.823 and 0.86.

• Buy above 0.8230 with the first target of 0.83, it might resume to 0.8355 and then to 0.85. 
• Below 0.852 look for further downside with 0.8385 and 0.8250 targets.

Overview:

NZD/USD movement will be continued straight from 0.8108 (at H4 chart 50% of Fibonacci retracement levels), therefore, the Kiwi is showing signs of strength, following the break of the highest level of 0.8230, so it will be a good sign to buy above the level of 61.8 of Fibonacci retracement levels on H4 chart with the first target of 0.83, and further to 0.8520 (it will act as a strong resistance for that it is going to be a good place to take profit, it also should be noted that this level of taking profit will coincide with 78% of Fibonacci). However, in case if a reversal takes place and NZD/USD could not break through the resistance level of 0.852, then the market will lead to further decline to 0.83, indicating bearish market.

The material has been provided by Instaforex Company – instaforex.com