FX.co ★ Technical analysis of NZD/USD for July 29, 2014

Technical outlook and chart setups:

1. The NZD/USD pair is seen to be drifting lower and is stalling around 0.8500 levels for now. As depicted here, fibonacci support is just around 0.8530/35 and a push above these levels could trigger a counter trend rally. If not, the bears could continue drifting lower towards 0.8400 levels. Aggressive trade setups would be to initiate long positions, risk remains at 0.8400 while a conservative approach is to watch for further confirmation.

2. Support is seen at 0.8400 levels, followed by 0.8350, 0.8250 and lower, while resistance is seen at 0.8710/20, followed by 0.8800/20 levels respectively.

3. The structure indicates that NZD/USD pair is into a religious downtrend which would potentially last for a few months. Watch the trend line support being broken around 0.8530/40 levels for now.

Trading recommendations:

Aggressive setup is to remain long, stop at 0.8400, target 0.8730/50.

Good luck!