Technical analysis of NZD/USD for May 5, 2015

Overview:

• The NZD/USD pair has been moving in the downtrend since last month. So, according to prior events, the price of NZD/USD is still trapped between the ratio of 78.6% Fibonacci retracement levels at the level of 0.7625 and 38.2% Fibonacci retracement at 0.7402. Moreover, the price opened below the ratio of 78.6% Fibonacci retracement levels (0.7605). Besides, it should be noted that the resistance is at the level of 0.7625 today. Therefore, it will be a good sign to sell below the level of 0.7625 with the first target of 0.7467. The minor support has been already set at the price of 0.7467 which coincides with the 50% of Fibonacci on the H4 chart. If the trend can break the minor support at 0.7467, the market will call for a bearish market towards the strong support around the area of 0.7402. On the contrary, in case a reversal takes place and the NZD/USD pair breaks through the resistance level of 0.7625, the market will head towards a further rise to 0.7678 this week in order to indicate a correctional movement at this level. Subsequently, on the same chart, the market represents strong resistance at 0.7678 and the double top will be at 0.7743.

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