NZD/USD technical analysis for June 18, 2013

 

Overview: 

NZD/USD movement will be continued straight from 0.7850 (in the H1 chart 23.6% 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 23.6% of Fibonacci retracement levels in the 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 a reversal takes place and NZD/USD breaks through the support level of 0.7850/0.7860, the market will lead to further decline to 0.7710, indicating bearish mood. 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 0.8050 look for further downside with 0.7923 and 0.7860 targets. Also it should be noted that if there happens a break through 0.7850, the market will indicate bearish momentum towards 0.7710.