NZD/USD: Technical Analysis for March 2, 2012

The view for NZD/USD is intact.

Strong Support: 0.8520.

Strong Resistance: 0.8230.

Trading Recommendations:

According to the previous events the price is expected to remain between 0.823 and 0.86 levels.

Buy-deals are recommended above 0.8230 with the first target seen at 0.83. The movement is likely to resume to the point 0.8355 and further to the point 0.85.
The decending movement is likely to begin from the level 0.852 with 0.8385 and 0.8250 seen as targets.

Overview:

The NZD/USD pair is expected to continue the movement from the point 0.8108 ( 50% of Fibonacci retracement levels on the H4 chart). Thus, kiwi shows the signs of strength, following the break of the highest level 0.8230. This fact can be considered as a good signal for BUY-deals buy above the point 61.8 of Fibonacci retracement levels on the H4 chart with the first targets 0.83 and 0.8520 (it will act as a strong resistance level considered appropriate for the Take Profit). It is necessary to mention that this level will coincide with 78% of Fibonacci. However, in case of the reverse movement and if the NZD/USD pair fails to break through the resistance level 0.852, the market will further decline to the 0.83 level, indicating bearish mood.