FX.co ★ Technical analysis of NZD/USD for November 11, 2014

Trading recommendation:

• The NZD/USD pair is trading below its resistance at the level of 0.7817 which represents the ratio of 50% Fibonacci retracement levels in H1 char. It is likely to trade in a lower range as far as it remains below its strong resistance. Short position is recommended with the first target at 0.7781. A breach of this target will move the pair further downwards to 0.7733. The supports stands at 0.7733 and 0.7700. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its supports it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.7773 and the second target at 0.7815.

Notes:

• We expect a new range about 64 pips today.
• The support of the NZD/USD pair has already set at 0.7733. Moreover, the weekly support 1 will set at the same level.
• The price of 0.7766 represents the daily pivot point and 0.7814 is going to form a double top. So, the key level will set at the level of 0.7817.