Overview:

• The NZD/USD pair has broken a major support at 0.8510 for that the level of 0.8510 became resistance, and it will continue to act as strong resistance on May 4, 2014. Also, it should be noted that the pivot point is calculated at 0.8480, and it is now approaching it to test it; therefore it will probably start a downward movement at this area and recover again. So the market will indicate a bearish opportunity at the levels of 0.8510 or 0.8480. Thus, it will be a good sign to sell at this area with the first target of 0.8420 (the double bottom sets at the level of 0.8421), and continue towards 0.8370. On the other hand, if a break at 0.8510, then it will be a good sign to set the stop loss for that the best location for placing stop loss should be at the level of 0.8530.

Trading recommendations:

• According to previous events, the price of NZD/USD is going to move between 0.8377 and 0.8510.
• Buy above the level of 0.8510 with the first target of 0.8560, it might resume to 0.8593.
• Below the level of 0.8500, look for further downside with 10.8420 and 0.8373 targets.