FX.co ★ NZD/USD: Technical Analysis for March 2, 2012

The view for NZD/USD is intact.

Strong Support: 0.8520.

Strong Resistance: 0.8230.

Trading Recommendations:

According to the previous events the price is expected to remain between 0.823 and 0.86 levels.

• Buy-deals are recommended above 0.8230 with the first target seen at 0.83. The movement is likely to resume to the point 0.8355 and further to the point 0.85.
  
• The decending movement is likely to begin from the level 0.852 with 0.8385 and 0.8250 seen as targets.
  

Overview:

The NZD/USD pair is expected to continue the movement from the point 0.8108 ( 50% of Fibonacci retracement levels on the H4 chart). Thus, kiwi shows the signs of strength, following the break of the highest level 0.8230. This fact can be considered as a good signal for BUY-deals buy above the point 61.8 of Fibonacci retracement levels on the H4 chart with the first targets 0.83 and 0.8520 (it will act as a strong resistance level considered appropriate for the Take Profit). It is necessary to mention that this level will coincide with 78% of Fibonacci. However, in case of the reverse movement and if the NZD/USD pair fails to break through the resistance level 0.852, the market will further decline to the 0.83 level, indicating bearish mood.