NZD/USD: Technical Analysis and Trading Recommendations for January 20, 2012.

Strong Support: 0.7720.

Strong Resistance: 0.8280.

Trading Recommendations:

According to previous events, the price will be trapped between 0.79 and 0.81.

Buy above 0.7935 with the first target of 0.81, it might resume to 0.8155 and then to 0.82.
Below 0.8265 look for further downside with 0.81 and 0.8060 targets.
Also it should be noted that if there happens a break through 0.79, the market will indicate bearish mood towards 0.7720.

Overview:

NZD/USD movement will be continued straight from 0.7933 (at H4 chart 38.2% of Fibonacci retracement levels), therefore the Kiwi is showing signs of strength, following the break of the highest level of 0.7933, so it will be a good sign to buy above the level of 38.2% of Fibonacci retracement levels on H4 chart with the first target of 0.80, and further to 0.8108 (it will act as a strong resistance for that it is going to be a good place to take profit, it also should be noted that this level of taking profit will coincide with 50% of Fibonacci). However, in case if a reversal takes place and NZD/USD breaks through the support level of 0.79, then the market will lead to further decline to 0.7720, indicating bearish market.