FX.co ★ NZD/USD Candlestick Analysis for September 3, 2012

Daily

After NZD reached Fibonacci level of 50.0% against USD, the quotes demonstrated a reverse to the good of the kiwi dollar and grew significantly on Friday. As the result, we can regard this move as quotes’ rebound from correctional level of 50.0%, although any bullish candlestick formation was formed. Now we can expect the quotes growth towards Fibonacci level of 61.8% - 0.8081. However, the rebound from that level is also possible and if it happens, the pair may hit again 50.0% - 0.7963 Fibonacci. In case NZD/USD fixes above the correctional level of 61.8%, the pair will get a great opportunity to reach further 76.4% -0.8228 Fibonacci.

4h

The same situation can be observed on 4-hour time frame. There is no any bullish candlestick formation, however, the pair demonstrated a swing (which was hard to foresee) and reached the correctional level of 76.4% - 0.8048 Fibonacci. Having returned to that level, the pair formed the bearish candlestick formation Top of Forceps. Taking this into account, we can suggest that the quotes may demonstrate a reverse near this level on Monday and resume their fall toward the correctional level of 61.8% - 0.7935. Until the pair is below the level of 76.4%, such outcome is most probable. In case the pair fixes above the correctional level of 76.4%, the pair will get a chance to continue its growth towards the correctional level of 100.0% - 0.8232.