NZD USD on the threshold of the main target – Analysis - 26/01/2015

The NZDUSD pair continued to decline strongly to begin testing 0.7400 barrier, and as we notice from the above chart, the price is approaching from 38.2% Fibonacci level for the entire bullish wave measured from 0.4883 to 0.8841 at 0.7330, which represents our main suggested target in our recent reports.

Stochastic offers negative signal that supports the continuation of the bearish pressure in the upcoming period, noting that breaking 0.7330 level will extend the pair’s losses on the short term and medium term basis, while breaching 0.7600 will motivate the price to attempt to stop the current negative pressure.

Expected trading range for today is between: 0.7330 support and 0.7525 resistance.

Expected trend for today: Bearish