NZD/USD intraday technical levels and trading recommendations for December 28, 2016 - Forex247

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Wednesday, December 28, 2016

NZD/USD intraday technical levels and trading recommendations for December 28, 2016

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During August and September, a consolidation range was established from the price level of 0.7250 up to 0.7350.

Later on October 20, the lower limit of the consolidation range (0.7250) stood as a temporary resistance which initiated a bearish movement toward 0.7100 (lower limit of the depicted channel).

Bullish recovery was expressed around the price level of 0.7100 on October 28. Hence, a double-bottom pattern was seen on the chart.

Bullish fixation above 0.7250 and 0.7350 was needed to allow further advance toward the projected target of the reversal pattern around 0.7450.

However, significant signs of a bearish reversal were expressed around the upper limit of the price range (0.7350).

The bearish breakdown of 0.7250 (lower limit of the depicted range) enhanced the bearish side of the market toward the price level of 0.7100 (recent bottom of October 28) which was broken as well.

Bearish persistence below 0.7100 allowed a quick decline toward 0.6960 (BUY zone) where bullish rejection and a valid BUY entry were expected. All T/P levels were successfully achieved.

Once again, bearish persistence below the price level of 0.7100 was needed to pursue toward lower target levels around 0.7060 and 0.6990 (upper limit of the depicted BUY zone).

This week, the price level of 0.6990 failed to apply enough bullish pressure. Instead, bearish continuation was achieved toward the lower limit of the depicted BUY zone (0.6860).

The NZD/USD pair remains trapped within the depicted price range (0.6860-0.6990) until breakout occurs in either directions.

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

From www.instaforex.com http://ift.tt/2iCM2SC

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