- The market of the NZD/USD pair is continuing to show signs of strength following the break at the prices of 0.7260 and 0.7345. Therefore, the resistances of the NZD/USD pair have broken and were turned into supports since yesterday. Moreover, the pair has already formed strong support at the level of 0.7260. So, the market indicates a bullish opportunity at the levels of 0.7260 and 0.7345 with the first target of 0.7391 and continues towards 0.7449 which represents the ratio of 38.2% Fibonacci retracement levels. On the other hand, if the trend can break this level and close below 0.7345, it will be a rather convincing downside momentum. The structure of the fall does not look corrective, for that the market will indicate the bearish opportunity at the price of 0.7345. As a result, it will be a good sign to sell at this level with a range of 0.7345 – 0.7257, but it should be kept in mind that stop loss should never exceed your maximum exposure amounts.
- Major support will be set at the level of 0.7260
- Major resistance will be set at the level of 0.7450.
- We expect a new range about 73 pips.
- If the trend is upward, the strength of the currency will be defined as follows: NZD is in an uptrend and USD is in a downtrend.
- Fibonacci retracement is used to determine accurate psychological levels of support and resistance. The period of time should be taken into account.
- Fibonacci is in a range trade; it looks like the trend is trapped moving up or down. If you sell or buy in the long term, you will surely lose your profit.
- Stop loss should never exceed your maximum exposure amounts. So, your stop loss should be around 53 pips for each position.
The material has been provided by InstaForex Company – www.instaforex.com