FX.co ★ Technical analysis of NZD/USD for March 3, 2015

Overview:

• The NZD/USD pair will continue its rise straight from the level of 0.7449 (38.2% of Fibonacci retracement levels on the H4 chart). Moreover, it is probably going to form a double bottom at the same time frame. Therefore, the NZD/USD pair is showing signs of strength following the break of the highest level of 0.7450, so it will be a good sign to buy above the level of 38.2% of Fibonacci with the first target of 0.7542 and further to 0.7617 (it will act as a strong resistance, so it will be a good place to take profit). It should be also noted that this level of taking profit will coincide with 61.8% of Fibonacci retracement level. However, in case if a reversal takes place and the NZD/USD pair breaks through the support level of 0.7449, the market will decline further to 0.7403 in order to indicate a bearish market.

Trading recommendations:

• According to the previous events, the price will be moving between the levels of 0.7613 and 0.7448.
• Buy above the price of 0.7448 with the first target of 0.7545, it might resume to 0.7610.
• Look for further downside with 0.7400 and 0.7375 targets below the levels of 0.7440/0.7435.