Weekly technical levels of NZD/USD for April 15-18, 2014

Weekly technical levels of the NZD/USD pair.

Observations:

If the trend is of an upside character, then the strength of the currency will be defined as following: EUR is in uptrend and USD is in downtrend. Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account. Fibonacci is in a range trade; it looks like the trend is trapped and going up or down. If you sell or buy in the long-term period, you will surely lose your profit.

Notes:

The support (Major support for April 15, 2014) will set at the level of 0.8600, but the double bottom is going to set at 0.8579. The NZD/USD pair called for the bearish market from the price of 0.8710 this week. So, the price of 0.8710 is representing strong resistance. Moreover, the level of 0.8710 is coinciding with the ratio of 78.6% Fibonacci retracement levels. Therefore, it will very useful to sell at this level with targets of 0.8615 and 0.8580. The stop loss should never exceed your maximum exposure amounts. Thus, it is of the wisdom to set your stop loss at the price of 0.8770. We expect a new range about 55 pips today.