FX.co ★ Technical analysis of NZD/USD for January 12, 2016

Overview:

• The NZD/USD pair will keep moving downwards from the level of 0.6603 (this level coincides with the 38.2% of Fibonacci retracement levels in H4 chart). Accordingly, the Kiwi is going to show signs of weakness at the highest price of 0.6603. Thereafter, it will be a good deal to sell below the level of 38.2% of Fibonacci retracement levels in H4 chart with the first target at 0.6481 and the second one at 0.6429 in order to test the double bottom (new project). Importantly, we expect that the new minimum price of 0.6429 will act as strong support and it is going to be a good place to take profit. On the other hand, in case a reflection takes place and the NZD/USD pair is not able to break through the suport at the 0.6781 level, the pair will further decline to 0.6429 to indicate a bearish market. At the same time, if the trend succeeds to stay above 0.6630, the market will continue upward movement above the daily pivot point towards the level of 0.6709.