NZD/USD: Technical Analysis for March 15, 2012

Strong Support: 0.7933.

Strong Resistance: 0.83.

Trading Recommendations:

According to the previous events the price is expected to remain between 0.8 and 0.83 levels.

Buy-deals are recommended above 0.7933 with the first target seen at 0.82. The movement is likely to resume to the point 0.8255 and further to the point 0.83.
The decending movement is likely to begin from the level 0.83 with 0.82 and 0.812 seen as targets.

Overview:

The NZD/USD pair is expected to continue the movement from the point 0.7933 (38.2% of Fibonacci retracement levels on the H4 chart). Thus, kiwi shows the signs of strength, following the breakdown of the highest level 0.7933. This fact can be considered as a good signal for BUY-deals above the point 38.2 of Fibonacci retracement levels on the H4 chart with the first targets 0.82 and 0.830 (it will act as a strong resistance level and considered as appropriate for Take Profit orders). It is necessary to mention that this level will coincide with 61.8% of Fibonacci (0.8282). However, in case of the reverse movement and if the NZD/USD pair fails to break through the resistance level 0.83, the market will further decline to the 0.7933 level, indicating a bearish mood.