NZD/USD: next buy target
• NZD/USD reversed from major support level 0.7200
• Next buy target - 0.7500
NZD/USD recently fell sharply – breaking the two support levels 0.7400 and 0.7300, both of which were set as the sell targets in our previous report for this currency pair. The breakout of these support levels intensified the bearish pressure on NZD/USD – helping the price approach the next major support level 0.7200 (which reversed the previous primary Ⓒ-wave in February and also the primary correction ② in March of 2011, as you can see below). Due the strength of this support level, the pair reversed up sharply from 0.7200 – thereby creating the bullish divergence on the daily RSI indicator.
NZD/USD is likely to correct further up toward the next buy target 0.7500 (intersecting with the resistance trendline of the weekly down channel from last year).