FX.co ★ Technical analysis of NZD/USD for May 7, 2014

Forecast in the long term:

• The key level of NZD/USD pair has set at the price of 0.8510 and this level is representing a strong support on May 7, 2014. Due to the previous events, the price of NZD/USD pair is still moving between the levels of 0.8780 and 0.8685. So, we expect a range of 120 pips in coming days. But, it should be noted that the risk of 80 pips must make a profit of 120 pips. Therefore, the support will be formed at the level of 0.8610 providing a clear signal for buy deals at 0.8610 (it should also be noticed that the level of 0.8682 is coinciding with the ratio of 38.2%) with the first target at 0.8680 and it will continue toward the double top at the price of 0.8777. However, stop loss is to be placed below 0.8450.