Technical analysis of NZD/USD for July 2, 2014

Overview:

• The NZD/USD pair will keep moving upwards from the level of 0.8783 (this level coincides with the 88% of Fibonacci retracement levels in H4 chart). Accordingly, the Kiwi is going to show signs of strength at the lowest price of 0.8730. Subsequently, it will be a good deal to buy above the level of 88% of Fibonacci retracement levels in H4 chart with the first target at 0.8779 in order to test the double top and further at 0.8815 (new project). Equally important, we expect that the new maximum price of 0.8815 will act as strong resistance for that it is going to be a good place to take profit. On the other hand, in case a reflection takes place and the NZD/USD pair is not able to break through the resistance at the 0.83815 level, the market will further decline to 0.8760 to indicate a bearish market on July 2, 2014.

Conclusion:

• If the trend succeeds to stay above 0.8730, then the market will be continuing in uptrend above the daily pivot point towards the level of 0.8815. But the stop loss should be placed below the level of 0.8730 at the price of 0.8693.

Intraday technical levels:

Date: 2/07/2014

Pair: NZD/USD

• R3: 0.8837
• R2: 0.8815
• R1: 0.8796
• PP: 0.8774
• S1: 0.8755
• S2: 0.8733
• S3: 0.8714

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