Trading Recommendations for NZD/USD for February 26, 2015
Couple of months ago, the NZD/USD pair created a consolidation zone that extended between the price levels of 1.7620 and 1.7870.
On January 20, bears managed to perform a successful breakout below the major DEMAND level at 1.7620.
In recent times, the NZD/USD pair managed to break above 0.7430. This price level is supposed to provide important SUPPORT for the pair at retesting.
The H4 chart confirms an inverted Head and Shoulders pattern that made off the price level of 0.7200 (the previous low).
Bullish fixation above the neck-line established the reversal pattern earlier this week. Expected bullish projection target for the reversal pattern is positioned around the price level of 0.7676.
Alternatively, the price level of 0.7630 meets to the 61.8% Fibonacci Level and the lower limit of the broken consolidation zone portrayed on the chart.
Therefore, the price zone of 0.7630-0.7670 should be observed for price action as low-risk SELL entries can be taken at retesting. Stop Loss should be positioned above 0.7700.