Technical analysis of NZD/USD for October 14, 2014

Overview:

• The psychological price will set at the level of 0.7888 today, and it is going to act as a weekly pivot point. Moreover, the NZD/USD pair has formed a support at the level of 0.7710 and the area of 0.7707 is probably going to compose a Double Bottom, hence the price of 0.7707 will form the last bearish wave and will act as a strong support on October 14, 2014. So it will be a good sign to buy above the level of 0.7707 with the first target of 0.7888 and further to 0.7952. The level of 0.7952 will act as a strong resistance today for that it will be a good place to take profit below the 0.7952 level. Also, it should be noted that the weekly resistance will set at the level of 0.8070. On the other hand, in case of reversal takes place and the NZD/USD breaks through the support at the price of 0.7833 then the market will lead to further decline towards the 0.77 level in coming days.

Observations:

• It should be noted that the market was so stable and the trend was also so clear (downward). Therefore, the strong resistance will set at 0.8070.
• Expect a range of 187 pips as downtrend from the level of 0.8070.
• A strong support level will be formed at the price of 0.7707 this week.
• Volatility is 251.84; so the market has called for a high volatility.

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