NZD/USD: Technical outlook

New Zealand Dollar lost nearly 3.8% during the week against US Dollar, bearing the fruits of Reserve Bank of New Zealand’s initiatives to cool down domestic housing market which is coupled with expectations that Fed would start tapering its $85 billion monthly asset purchase program by September.

• The kiwi, as it is nick named is currently trading near 0.7800 level, heading for the important support level of 7760 (ascending trend line connecting the lows of 0.7686 and 0.7735).
• If the pair trades below 0.7760, it is expected to test 0.7650 level, breaking which 0.7550 can be the next support level.
• If the pair continues to trade below 0.7550, it is vulnerable to test 0.7450 (the lowest level in 2012).
• On the upside, the pair can test 0.7900 – 0.7920 resistance zone (including 50-day SMA and 61.8% Fibonacci Retracement Level of its up move from 0.7457 to 0.8676), breaking which it can test 0.7980 – 0.8000 resistance zone.
• If the pair sustains a breakout above 0.8000, it is expected to trade above 0.8070 – 0.8080 resistance zone (including 50% Fibonacci Retracement Level).

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/