FX.co ★ NZD/USD: Technical Analysis for March 2, 2012

The same view for NZD/USD is still intact.

Strong Support: 0.8520.

Strong Resistance: 0.8230.

Trading Recommendations:

According to previous events, the price will be trapped between 0.823 and 0.86.

• Buy above 0.8230 with the first target of 0.83, it might resume to 0.8355 and then to 0.85.
  
• Below 0.852 look for further downside with 0.8385 and 0.8250 targets.
  

Overview:

NZD/USD movement will be continued straight from 0.8108 (at H4 chart 50% of Fibonacci retracement levels), therefore, the Kiwi is showing signs of strength, following the break of the highest level of 0.8230, so it will be a good sign to buy above the level of 61.8 of Fibonacci retracement levels on H4 chart with the first target of 0.83, and further to 0.8520 (it will act as a strong resistance for that it is going to be a good place to take profit, it also should be noted that this level of taking profit will coincide with 78% of Fibonacci). However, in case if a reversal takes place and NZD/USD does not manage to break through the resistance level of 0.852, then the market will lead to further decline to 0.83, indicating bearish market.