FX.co ★ The candlestick analysis of NZD/USD for 2010/07/20

The NZD/USD is pulling back from Fibonacci correctional level of 50.0.
Earlier on a 4-hour chart NZD/USD formed the candlestick combination “Dark Cloud Cover” on the uprising trend, which is the signal for decline. This candlestick combination developed close to the resistance level of 0.7300, where the bulls did not managed to fixate and the bears began to increase their influence and a rollback took place – all this speak in favor of the downward movement. Moreover, NZD/USD broke out the support level of 0.7165 and Fibonacci correction level of 23.6. this means that this viewpoint is correct. Now it is expected that NZD/USD aim at the next support level of 0.6981, where also Fibonacci correction level of 61.8 is placed.
On the other hand, if the resistance level of 0.7165 is broken through, short positions are better to close because it will open the way to 0.7300.