Technical analysis of NZD/USD for May 23, 2014

Overview:

• The NZD/USD pair has been moving in downtrend since last week. So, according to prior events, the price of NZD/USD pair has still been moving between the ratio of 50% Fibonacci retracement levels at the level of 0.8606 and 23.6% Fibonacci retracement at the 0.8518 level. Furthermore, the price opened below the ratio of 50% Fibonacci retracement levels (0.8606). Also, it should be noted that the resistance is set at the 0.8606 level today. Therefore, it will be a good sign to sell below the level of 0.8606 with the first target of 0.8518. It should be noticed that the minor support has already set at the price of 0.8510.
• However, in case a reversal takes place and the NZD/USD pair breaks through the support level of 0.8500, the market will lead to further decline to 0.8455 today in order to indicate a correctional movement at this level. Meanwhile, the H4 chart represents strong support at 0.8438 which forms the double bottom.

Intraday technical levels:

Date and Time: 23/05/2014 11:25

Pair: NZD/USD

• R3: 0.8625
• R2: 0.8608
• R1: 0.8588
• PP: 0.8571
• S1: 0.8551
• S2: 0.8534
• S3: 0.8514

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