FX.co ★ The candlestick analysis of NZD/USD for 2010/07/06

The NZD/USD currency pair continues the downward motion after it has not managed to break out the resistance level of 0.6971. Earlier, on a 4-hour chart NZD/USD has shaped “Doji” candle on uprising trend. The fact that this candle developed around the strong resistance level of 0.7160 became a good sign of the falling movement, where the bulls did not managed to fixate, the bears increased their influence, and pullback took place.
In addition, NZD/USD broke through the support level of 0.6995 that meant that this viewpoint is correct. The breach of this mark also led to “triple vertex” formation.
If the mark of 0.6800 is broken, NZD/USD will aim at the next support level of 0.6572.
On the other hand, if the resistance level of 0.6971 is breached, short positions should be closed, as it will open the way to 0.7160.