On January 28, the depicted support at 0.6400 acted as a
prominent key level offering a valid buy entry. The 0.6550 level was broken a few weeks ago.
Bullish persistence above 0.6550 (depicted recent support) was
necessary to keep the price moving towards higher bullish targets.
During February’s consolidations, the price zone of 0.6750-0.6840
constituted a significant resistance zone where signs of a bearish rejection
were seen (triple-top reversal pattern).
On February 9, the NZD/USD pair failed to consolidate below the
depicted support level at 0.6550.
Moreover, an obvious bullish recovery was expressed around the
depicted temporary support level. Hence, the recent bullish swing towards 0.6750
and 0.6860 was initiated.
In March, obvious bullish breakouts above 0.6750 and 0.6860 were
executed. Hence, the price level of 0.6750 constituted a significant support
level where a bullish hammer daily candlestick was expressed on May 10.
Recently on May 6, a daily candlestick closure below the 0.6850 level enhanced
a quick bearish movement towards 0.6750 where a valid BUY entry is offered.
T/P levels to be located at 0.6850 and 0.6920 while S/L can be
set as a daily closure below 0.6750.
This week, bullish persistence above 0.6850 is mandatory to
maintain enough bullish momentum in the market. Otherwise, sideways
consolidations will continue between the price levels of 0.6750 and 0.6850.
The material has been provided by InstaForex Company – www.instaforex.com
The post NZD/USD intraday technical levels and trading recommendations for May 18, 2016 appeared first on forex-analytics.press.