FX.co ★ Technical analysis of NZD/USD for May 9, 2014

Overview:

• The resistance of the NZD/USD pair on May 9, 2014 is going to set at the level of 0.8785 and the support had already been placed at 0.8510. So, we expect a range of 137 from today until the next week. It should be noted that the level of 0.8785 is coinciding with the ratio of 100% Fibonacci retracement levels. Consequently, the descending movement will probably be lower than 0.8785 level, with the targets at 0.8650. The market will lead to further decline to 0.8510 in the next days in order to indicate a correctional movement at this level. Meanwhile, in H4 chart represents a strong support at 0.8510. Furthermore, it will be very profitable to buy above this level for retesting this level in the short period. Therefore, buy deals are recommended above the 0.8510 level with targets at 0.8580 and 0.8676 to reach the ratio of 61.8%.