FX.co ★ Technical analysis of NZD/USD for July 22, 2014

• Pair: NZD/USD
• Period: from Tuesday to Friday.
• Date: July 22, 2014.
• Weekly range: between 110 pips and 140 pips.
• Volatility: 287.63

Overview:

• The NZD/USD pair will continue falling straight from the level of 0.8622 in H4 chart. It is probably going to form a double bottom at the level of 0.8620. Therefore, the Kiwi is showing signs of strenght following the break of the highest level of 0.8620. So, it will be a good sign to buy in the short term above the level of 50% of Fibonacci retracement levels in H4 chart (0.8621) with the first target of 0.8680 in order to retest the daily pivot point and further 0.8740 (the price of 0.8740 will act as strong resistance, so it is going to be a good place to take profit). Also, it should be noted that this level of taking profit will coincide at 78.6% of Fibonacci. However, in case a reversal takes place and NZD/USD breaks through the support level of 0.8605, the market will lead to further decline to 0.8570, in order to indicate the bearish market today.