Technical analysis of NZD/USD for December 18, 2014
The NZD/USD pair is in the short term. The price of the NZD/USD pair is likely to turn to bearish trend from the level of 0.7769 (61.8% of Fibonacci retracement levels). It should be noted that the recent high has set at the level of 0.7780.
As a result, it will be a good signal to sell below 0.7770 with the primary target of 0.7735 to check minor support at this level. Moreover, it will call for downtrend to maintain its bearish movement towards 0.7709 price (38.2% of Fibonacci retracement levels).
Thus, the stop loss point should be placed above 0.7770 at the price of 0.7792. As well, the stop loss has set in 22 pips. Therefore, the risk of 22 pips should make a profit of 43 pips at least. Similarly significant, the support will place at the 0.7700 level.
Moreover, it should be noticed that the choice today will be about 70 pips because we have a low volatility today.
According to the prior events, the NZD/USD pair is supposed to move between 0.7770 and 0.7705 levels. The resistance will be placed at the level of 0.7770 and the support has already been positioned at the price of 0.77.
We assume a new variety about 70 pips today. The key level will set at the level of 0.7735 (daily pivot point). The level of 0.7780 is going to stand for the double top.