FX.co ★ Candlestick analysis of NZD/USD for 09/08/2010

At present, short positions are better to keep because no signals to their closing have occurred. Earlier on a daily chart, NZD/USD has developed a bearish combination “Evening Star”. This combination was formed close to a strong resistance level of 0.7400, where the bulls did not managed to fixate and the bears began to dominate.
If Fibonacci correctional level of 23.6 is broken out, it will mean that this viewpoint is correct. In this case it is expected that NZD/USD can go downwards to 0.7032, where Fibonacci correction level of 61.8 is also placed.
On the other hand, if the resistance level of 0.7400 is broken through, short positions are to be closed because it will cause an increase to 0.7450.