FX.co ★ Technical analysis of NZD/USD for September 24, 2014

Trading recommendations:

Time frame: Daily.

• According to previous events, the price of NZD/USD pair has still been trapped between 0.8133 and 0.8010 in the long term.
• Buy above the level of 0.7990 (23.6% of Fibonacci retracement levels) with the first target of 0.8070, it might resume moving to 0.8150 and the price will form a new top at this level. The level of 0.8150 will represent a strong resistance today.
• Below the level 0.8150 look for further downside with 0.8055 and 0.7990 targets.

Review:

• It should be noted that the market was rather stable and the downward trend was also clear.
• Expect a range of 160 pips as a downtrend from the level of 0.8150.
• A strong support level will be formed at the price of 0.7990.
• The value of 38.2% Fibonacci retracement levels has set at the 0.8151 level. So, the ratio of 38.2% is going to act as major resistance. Moreover, it is the key level to confirm the bearish market.