The NZD/USD is strongly declining after it could not break through the resistance level near the Fibonacci correction level 50.0. Earlier on a 4-hour chart the NZD/USD has formed the combination of candlesticks Bullish Engulfing, which indicates the uprising movement.
This combination of candlesticks emerged after earlier the currency pair failed to break out the support level of 0.7400, which means that the bears did not manage to solidify here and the bulls started to increase their presence.
A breakout of the Fibonacci correction level 38.2 and resistance level 0.7630 denotes that this point of view is correct. Now we forecast the upside movement to the Fibonacci correction level 61.8 with the next target to 0.7835.
It is recommended to place the stop orders slightly below 0.7400, since the breakthrough of this support level will target the pair to 0.7150-0.7200.
