FX.co ★ Technical analysis of NZD/USD for August 27, 2014

Overview:

• According to previous events, the NZD/USD pair is still moving between 0.8315 and 0.8433.
• Strong level (resistance) will be formed at the level of 0.8509 (this level coincides with the ratio of 38.2% Fibonacci retracement levels) providing a clear signal for sell deals with the target seen at 0.8310 in order to test the double bottom in H4 chart.
• Stop-loss is to be placed above the double top at the level of 0.8538.
• Strong level (support) will be formed at the level of 0.8310 (this level coincides with the ratio of 00% Fibonacci retracement levels) providing a clear signal for buy deals with the target seen at the 0.8430 and 0.8509 levels in order to test the daily pivot point and weekly resistance 1 respectively.
• Also, it should be noted that: If the trend breaks the daily pivot point (0.8433), it will continue towards the weekly resistance 1 at the price of 0.8809 which represents a strong resistance.
• However, the stop loss should never exceed your maximum exposure amounts. So, it is to be placed below the double bottom at the price of 0.8270.