FX.co ★ Technical analysis of NZD/USD for February 6, 2015

Overview:

The NZD/USD pair will be continued straight from the level of 0.7384. On the H1 chart, the level of 0.7384 represents a strong support because it coincides with the 38.2% of Fibonacci retracement levels. Moreover, the same level is probably going to form a double bottom at the same time frame. Therefore, the NZD/USD pair is showing signs of strenght following the break of the highest level of 0.7380, so it will be a good sign to buy above the level of 38.2% of Fibonacci retracement levels on the H1 chart with the first target of 0.7446 and continue towards 0.7507 (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 61.8% of Fibonacci). However, in case if reversal takes place and the NZD/USD pair breaks through the support level of 0.7380, the market will lead to further decline to 0.7310 in order to indicate for a bearish market.