Technical analysis of NZD/USD for December 31, 2015

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Trading recommendations:

  • The NZD/USD pair is still moving between 0.6762 and 0.6880 (a narrow range but in an uptrend channel). It should be noted that the key level is seen at 0.6762, which represents a ratio of 38.2% Fibonacci retracement levels in the H4 chart. Equally important, the double top will be formed at the level of 0.6880. As it is known, history will probably repeat itself at this level again. Therefore, it will be a good idea to buy above 0.6762 with the first target at 0.6880. If the trend is able to break the double top at 0.6880. Then, it will call for an uptrend in order to continue its bullish movement towards 0.6949 later. On the other hand, the stop loss should never exceed your maximum exposure amounts, consequently the stop loss should be set below 0.6762 at 0.6740.

Notes:

  • We expect a new range about 80 pips today.
  • The key level will set at 0.6760.
  • The resistance will set at 0.6780.

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

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