FX.co ★ Technical analysis of NZD/USD for January 3, 2014

Overview:

The NZD/USD pair will keep moving downwards from the level of 0.8120 (this level coincides with the 50% of Fibonacci retracement levels in H4 chart). Accordingly, the Kiwi is going to show signs of strength at the owest price of 0.8120 on January 3, 2014. Thus, it will be a good deal to buy above the level of 50% of Fibonacci retracement levels on H4 chart with the first target at 0.8200 and further at 0.8275. Equally important, 0.8313 will be acting as a strong resistance so 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 around 78% of Fibonacci Fibonacci retracement levels). On the other hand, in case a reflection takes place and the NZD/USD pair is not able to break through the resistance at the 0.8313 level, the market will further decline to 0.8110 in order to indicate a bearish market on the 3rd of January, 2014.