FX.co ★ Candlestick analysis of NZD/USD for 16/08/2010

The NZD/USD pair is continuing the downward movement. Earlier, on a daily chart, NZD/USD has shaped a bearish candlestick combination “Evening Star”.
This candlestick combination developed nearly the strong resistance level of 0.7400, where the bulls did not managed to fixate and the bears became active.
In addition, 23.6 Fibonacci correctional level was broken out, having confirmed this standpoint.
It is expected that the pair will move downwards to 0.7032, where Fibonacci correctional level of 38.2 is placed also. If this level is breached, NZD/USD will aim at 0.6800. But a descendant motion can be restricted by Fibonacci correctional level of 61.8 in the area of 0.6850.
On the other hand, if the pair breaks through the resistance level of 0.7360, short positions should be closed, as it will cause a growth to 0.7450.