NZD/USD: Technical Analysis and Trading Recommendations for December 29th -- 30th, 2011.


Strong Support: 0.7575.

Strong Resistance: 0.7835.

At 0.7370 will be formed a double bottom.

Trading Recommendations:

According to previous events, the price will be trapped between 0.78 and 0.76.

Buy above 0.758 with a first target of 0.771, it might resume to 0.783.
Below 0.7835 look for further downside with 0.771 and 0.750 targets.


Overview:

The NZD/USD will be continued straight from 0.7370 (At H4 chart 00% of Fibonacci retracement levels, as well it's probably going to form a double bottom), therefore the Kiwi is shown signs of strenght following the break of the highest level of 0.737, so it will be a good sign to buy above the level of 00% of Fibonacci retracement levels on H4 chart (The double bottom) with a first target of 0.746 and futher to 0.757 (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 at 23.6% of Fibonacci). However, in case of reversal takes place and the NZD/USD breaks through the support level of 0.7370 then the market will lead to futher decline to 0.7185, in order to indicating for a bearish market.