25.07.201412:24 Forex Analysis & Reviews: Technical analysis of NZD/USD for July 25, 2014

Overview:

• The NZD/USD pair will keep moving downwards from the level of 1.7003 (this level coincides with the 61.8% of Fibonacci retracement levels in H4 chart). But, it should be noted that the support had already stood at the price of 1.6950 for that we expect a saturation around the spot of 1.6950 and 1.6945. Accordingly, the Cable (British pound vs the US dollar) is going to show signs of strength at the lowest price of 1.6950 on July 26, 2014. Thus, it will be a good deal to buy above the level of 50% (1.6945) of Fibonacci retracement levels in H4 chart with the first target at 0.7003 and further at 0.7030. Equally important, 0.7030 will be acting as a strong resistance, so it is going to be a good place to take profit. Also, it should be noted that this level of taking profit will coincide approximately with the ratio of 61.8% of Fibonacci retracement levels). 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 0.7030 level, the market will further decline to 0.6966 in order to indicate a bearish market on the 25th of July, 2014.