Technical analysis of NZD/USD for December 21, 2016

Overview:

• In the long term, the NZD/USD pair continued to move downwards from the level of 0.6983 (38.% Fibonacci) to the bottom around 0.6920.
• The NZD/USD pair is still set below the daily pivot point (0.6920).
• The trend has already broken the bullish channel at the levels of 0.7073 and 0.6983.
• The first resistance level is seen at 0.6983 followed by 0.7030, while daily support 1 is seen at 0.6865.
• Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.6920.
• It will be good to sell at 0.6920 with the first target of 0.6865. It will also call for a downtrend in order to continue towards 0.6814.
• According to the previous events, we expect the NZD/USD pair to trade between 0.6920 and 0.6814 in coming hours.
• The price area of 0.6983 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.6983 is not broken.
• On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.6983, then a stop loss should be placed at 0.6703.

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