NZD/USD: technical analysis

NZD/USD, H4

On the H4 chart, the instrument returned to decline after correction and is trading at the lower border of Bollinger Bands. The indicator cloud is expanded, which indicates the probable preservation of the downtrend in the short term. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is crossing the oversold zone boundary from below, forming a signal to open long positions.

NZD/USD, D1

On the D1 chart, the downtrend is still in force. The instrument is trading near the lower line of Bollinger Bands, the price range is expanding. MACD histogram is in the negative zone keeping a signal for opening short positions. Stochastic is in the oversold zone and its lines are directed downwards.

Key levels

Resistance levels: 0.6282, 0.6305, 0.6343, 0.6361, 0.6370, 0.6400.

Support levels: 0.6255, 0.6230, 0.6200.

Trading tips

Short positions may be opened from the current level with target at 0.6200 and stop loss at 0.6305.

Long positions may be opened from 0.6310 with target at 0.6360. Stop loss — 0.6280.

Implementation time: 1-3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL

  • Entry Point

    0.6264

  • Take Profit

    0.6200

  • Stop Loss

    0.6305

  • Key Levels

    0.6200, 0.6230, 0.6255, 0.6282, 0.6305, 0.6343, 0.6361, 0.6370, 0.6400

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    0.6310

  • Take Profit

    0.6360

  • Stop Loss

    0.6280

  • Key Levels

    0.6200, 0.6230, 0.6255, 0.6282, 0.6305, 0.6343, 0.6361, 0.6370, 0.6400