FX.co ★ Technical analysis of NZD/USD for December 9, 2015

Overview:

• • The NZD/USD pair will continue with its rise straight from the level of 0.6578 (23.6% of Fibonacci retracement levels on the H1 chart). Moreover, it is probably going to form a double bottom at the same price of 0.6578. Therefore, the NZD/USD pair is showing signs of strength following the break of the highest level of 0.6578, so it will be a good sign to buy above the level of 38.2% of Fibonacci with the first target of 0.6649 and further to 0.6682 (it will act as a strong resistance, so it will be a good place to put take profit). This level of taking profit will coincide with 61.8% of Fibonacci retracement level. However, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.6578, the market will decline further to 0.6548 in order to indicate a bearish market in the same time frame.

Trading recommendations:

• According to the previous events, the price will be moving between the levels of 0.6577 and 0.6650.
• Buy above the price of 0.6577 with the first target of 0.6649, it might resume to 0.6682.
• Look for further downside with the targets at 0.6682 and 0.670 below the levels of 0.6545.