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The NZD/USD currency pair was testing an important area which is 0.7323-0.7466 which is important for the following reasons:
- It's a price level of many previous tops & buttoms.
- 61.8% Fibonacci level for the whole swing up between May 2010 to July 2011 is located at 0.7420.
- The lower limit of the long-term bullish channel marked on the chart.
During the last few days, we had weak bearish closures in the mentioned zone without obvious break.
Today's opening was at 0.7506 above the upper limit of our demand with a gap to the upside which means we have bullish defense off this area.
Based on the previous analysis:
Price level 0.7445 is considered appropriate for opening LONG position with SL placed below 0.7320.
TP should be at 0.7470, 0.7500, 0.7560 then 0.7650 as a final target.
