Overview:

The NZD/USD pair has broken a major support at the level of 0.7395. It should be noted that the new resistance was calculated and found at the level of 0.7400 (50% of Fibonacci retracement levels) and it is now approaching this level in order to test it. Also, you have to notice that the price of 0.7400 has become a strong support on March 18, 2015. So, the NZD/USD pair will be fixed at the levels of 0.7360 and 0.7520. So, we expect this week a range of 160 pips roughly. Therefore, it will probably start an upward movement in this area and recover again. Thus, the market will indicate a bullish opportunity at the 0.7400 level, and it will be a good sign to buy at this spot with the first target at 0.7450. It will then continue moving towards 0.7520 for forming a double top today. Moreover, we look for the weekly target around the strong resistance near the spot of 0.7560 (new projection for March 19-20, 2015). On the other hand, if a break of 0.7347 happens, then it will be a good location for placing a stop loss at the level of 0.7330.