NZDUSD tests the key resistance – Analysis - 22-02-2017

The NZDUSD pair shows bullish bias after approaching from the waited initial target at 0.7112, to begin testing the critical resistance at 0.7174 now, noticing that this level represents the resistance of the falling wedge that its lines appear in the image, which means that breaching it will motivate the price to regain the main bullish trend that stopped to make some bearish correction recently.

The EMA50 and stochastic are providing negative signals that might push the price to decline, therefore, the contradiction between the mentioned technical factors makes us prefer staying aside temporarily in order to monitor the price behavior according to the above-mentioned levels that begin at 0.7250 and extend to 0.7375, while breaking 0.7112 will push the price to extend its bearish correction towards 0.7049 then 0.6972 before any new attempt to rise.

Expected trading range for today is between 0.7049 support and 0.7250

Expected trend for today: Depends on the above mentioned levels