FX.co ★ NZD/USD Intraday Technical Analysis November 1, 2011

When we have a look on the daily chart, We find that area 0.8166-0.8265 acted as a supply zone which was retested showing massive bearish reaction.

This bearish reaction is manifested in the daily bearish engulfing candlestick indicating strength of the bears at this junction of the chart,

On the 4H chart, we see the bearish reaction more clearly manifested in the double top pattern which was confirmed and achieved its target as well.

Based on the previous analysis, the market suggests a short position at around 0.8120 with SL 4H closure above 0.8170.

TP should be 0.8080, 0.8020, 0.7950.