NZD/USD: technical analysis
By Dima Chernovolov
• NZD/USD breaks multiple support levels
• Likely to fall further to 0.7200
NZD/USD has been falling steeply in the last two trading weeks – breaking through multiple consecutive support levels. First the pair broke below the support level 0.7700 (which has repeatedly reversed this currency pair from last September), then, last week it broke below the support level 0.7450 (former multi-month low from May of 2012). This support breakout was quickly followed by the most recent breakout of the next major support level 0.7400 (which reversed the pair sharply at the end of 2011).
NZD/USD is likely to continue to fall strongly inside the active intermediate downward impulse wave (3) in the direction of the next support level 0.7200 (which previously reversed the pair in March of 2011). Sell stop-loss can be placed above 0.7400.