Technical levels on the NZD/USD

Technical analysis can be applied to any financial instrument that has an opening level, a high, a low, and a close. However, some instrument are more technical than others and react in a predictable way around the technical levels. In the case of the NZD/USD, we can see that it has recently made some reversals around key technical zones. On the daily chart of the Kiwi we can see that the pair started rising from the psychological and round number level of the 0.6900 at the end of last year to reach a high at the 0.7373 to then go back down 100% to the 0.6900 level at the beginning of March. Just when it got to the 0.6900 level, it made a double bottom formation there to change direction to the upside. The bullish momentum accelerates and the NZD/USD reaches the 200 day EMA zona, which is around the 0.7091 level from where it bounces to the downside to reach another round number level at the 0.7000. Once it reached the 0.7000 level during today’s session, it forms a hammer pattern on the daily candles, which is a bullish reversal formation and it is possible for the price to reach the 200 day EMA again for next week. But if the pair breaks below the 0.7000 level, then it may very easily go and visit the 0.6900 level again.