Overview:
The NZD/USD pair broke resistance which turned to strong support at the level of 0.6625 yesterday. The level of 0.6625 coincides with a ratio of 50% of Fibonacci, which is expected to act as major support today.
The Relative Strength Index (RSI) is considered overbought because it is above 70. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100 and 50).
This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above 0.6625 with the first target at the level of 0.6669.
From this point, the pair is likely to begin an ascending movement to the point of 0.6669 and further to the level of 0.6697.
Further close above the high end may cause a rally towards 0.6949. Nonetheless, the weekly resistance level and zone should be considered.
The level of 0.6949 will act as strong resistance and the double top is already set at the point of 0.6949.
Trading recommendations for NZD/USD for January 16, 2020
According to previous events, the NZD/USD pair has still been moving between the level of 0.6625 and the 0.6697 level. It should be noted that the 0.6669 price (around double top at the level of 1.3892) will act as a strong resistance on January 16, 2020.
Therefore, it will be too gainful to buy above the price of 0.6625 in order to look for further upside with 0.6669 and 0.6697 targets.
It should also be reminded that stop loss must never exceed the minimum exposure amounts. Thus, stop loss should be placed at the 0.6602 level today.
