FX.co ★ NZD/USD candlestick analysis for March 22, 2011

The NZD/USD currency pair is advancing further and at the moment is testing the Fibonacci correction level 38.2.
Earlier on a daily graph the NZD/USD pair formed a Inverted Hammer candlestick, indicating upside movement.
This candlestick was formed after the decline of the currency pair was limited near 0.7160, which denotes that the bears could not solidify here and the bulls started to increase their influence.
Break of the Fibonacci correction level 23.6 proves this viewpoint. Now we should expect upside movement to the Fibonacci correction level 50.0, where the resistance level 0.7476 is also located.
Stop loss should be placed slightly below 0.7121, since its break will allow the pair to reach 0.6949.