Technical analysis of NZD/USD for July 13, 2016
The NZD/USD pair didn’t make any significant movements yesterday. There are no changes in our technical outlook. The bias remains bullish in the nearest term testing 0.9315 or higher. Immediate resistance seen around 0.9315. A clear break above that area could lead price to the neutral zone in the nearest term. Price will test 0.7415, because in general, we remain bullish market in coming hours.
The market moved from its bottom at 0.7242 and continued to rise towards the top of 0.9315. Today, on the one-hour chart, the current rise will remain within a framework of correction. However, if the pair fails to pass through the level of 0.9315 (minor resistance), the market will indicate a bullish opportunity above the level of 0.9315 (the level of 0.9315 coincides with the double top). Since there is nothing new in this market, it is not bearish yet. Buy deals are recommended above the level of 0.9315 with the first target at 0.7415. If the trend breaks the double bottom level of 0.7415, the pair is likely to move upwards continuing the development of a bullish trend to the spot of 0.7425 – 0.7450 so as to form a new double top.
On the contrary, if a breakout takes place at the support level of 0.7181, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 0.7053.