Technical analysis of NZD/USD for August 13, 2014

Notes:

• The double top of the NZD/USD pair will set at the level of 0.8506.
• The support is going to set at 0.8404. And this level is going to represent the double bottom in the H4 chart.
• The major support has already represented the weekly support one.
  Moreover, the double bottom also coincides with the major support and the strong support.
• The price hit the weekly pivot point and support 1 last week, because of the series of relatively equal highs and equal lows.
• We expect a range of 50 pips today.

Trading recommendations:

• According to the previous events, the NZD/USD pair has still been moving between 0.8503 and 0.8420.
• Sell at 0.8506 (the weekly resistance 1) with the first target at the 0.8440 price, then it will call for a downtrend in order to continue its bearish movement towards 0.8404 in order to test this strong support (it should be noted that the price of 0.8404 had already formed the double bottom).
• At the same time, the stop loss should be placed at the level of 0.8543.
• Buy above the price of 0.8400 in the short term (if the trend fails to close below it) with a target at 0.8455. We shouthe price of 0.8455.

The material has been provided by InstaForex Company – www.instaforex.com