Forex Trading: NZD/USD Could Reverse Into Rally
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Chart View: NZD/USD
Critical Resistance 1: 0.74465
Critical Resistance 2: 0.71454
Critical Support 1: 0.63358
Critical Support 2: 0.60800
The long term weekly downtrend in NZD/USD tends to complete its correction with price trading near the 38.2 % Fibonacci retracement level drawn from the high of 6 July 2014 to the low of 23 August 2015.We will sell the pair with minor retracement near the 38.2% Fibonacci retracement level at 0.71454.
The ideal stop loss should be set just above the pin bar wick formed at the 100-day SMA and confluence with 38.2% Fibonacci retracement level. The first downward target of this pair would be the first critical support level 0.63358, low of 17th January 2016 according to www.borse.pro.A clear decisive break of the low will bring further downward resumption and ultimately challenge the next critical support at 0.60800.
For the bullish scenario, the pair needs to overcome the 100 days simple moving average and 38.2% Fibonacci retracement level to test the first critical resistance at 0.74465 placed near the 50% retracement level. If the price manages to overcome the 50% Fibonacci level than a strong bullish break of the 61.8% Fibonacci level at 0.77676 is required to bring short term uptrend in NZD/USD pair.