NZD/USD technical analysis for January 13, 2015

NZD/USD is expected to make a bounce higher towards 0.6640 as long as it holds above 0.6515. There are sings of a short-term trend reversal as the price has reached an important long-term support.

Red line - long-term resistance trend line

Blue line - long-term support trend line

The daily chart of NZD/USD shows that the price is at important support levels while the stochastic oscillator is at oversold levels. The price should bounce strongly from current levels as long as bulls manage to hold above 0.6515. A break below this level will open the way to the level of 0.61.

The double bottom on the 4-hour chart above 0.65 can produce a bounce towards 0.6650. The short-term resistance will produce a buy signal if it is broken at 0.6590. Support is at 0.6550 and should not be broken if bulls want to remain in control of the short-term trend.The material has been provided by InstaForex Company - www.instaforex.com