FX.co ★ NZD/USD candlestick analysis for June 2, 2011

In a 4-hour graph the NZD/USD currency pair formed a Bearish Engulfing candlestick combination, indicating downside movement.
This candlestick combination was formed after an unsuccessful attempt to break the 0.8266 resistance level, which means that the bears could not solidify here and the bulls started to increase their influence.
Break of the Fibonacci correction level 23.6 will prove this point of view. Besides, an important support level 0.8000. In case of its break we expect a decline to 0.7759 with further target at 0.7121.
The RSI and the MACD divergence support the downside movement.
It is worth mentioning Stop Loss should be placed slightly below 0.8266 as a break of this support level will target the pair to 0.8300.