NZD/USD: technical analysis for June 13, 2013

 

Overview:

NZD/USD movement will be continued straight from 0.7858 (on H1 chart 00% of Fibonacci retracement levels). Therefore the Kiwi is showing signs of strength, following the break of the highest level of 0.7860. So it will be a good sign to buy above the level of 00% of Fibonacci retracement levels on H1 chart with the first target of 0.7960 and further to 0.8050 (it will act as a strong resistance for that 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 78% of Fibonacci). However, in case if a reversal takes place and NZD/USD breaks through the support level of 0.7860, then the market will lead to further decline to 0.7710, indicating bearish market.

Trading recommendations:

According to previous events, the price will be trapped between 0.8000 and 0.7920. 

Buy above 0.7860 with the first target of 0.7950, it might resume to 0.80 and then to 0.8047. 

Below 0.7960 look for further downside with 0.7803 and 0.7760 targets. Also it should be noted that if there happens a break through 0.7760, the market will indicate bearish mood towards 0.7710.