NZD/USD: technical analysis

NZD/USD, H4

On the H4 chart, the instrument consolidated above the moving average of Bollinger Bands. The indicator is reversing sideways and the price range has reduced, which indicates the change of the uptrend. MACD histogram is in the positive zone keeping a weak buy signal. Stochastic is approaching the overbought area; a strong sell signal can be formed during 1-2 days.

NZD/USD, D1

On the D1 chart, the instrument is testing the center line of Bollinger Bands, which is the key resistance level. The indicator is reversing downwards and the price range is reducing, which indicates formation of the downtrend. MACD is keeping a sell signal. Stochastic is about to enter the overbought area, a strong sell signal can be formed during 1-2 days.

Key levels

Resistance levels: 0.6350, 0.6376, 0.6412.

Support levels: 0.6303, 0.6272, 0.6240, 0.6205.

Trading tips

Short positions may be opened from the current level with target at 0.6250 and stop loss at 0.6335.

Long positions may be opened above 0.6335 with target at 0.6410 and stop loss at 0.6295.

Implementation time: 1-3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL

  • Entry Point

    0.6320

  • Take Profit

    0.6250

  • Stop Loss

    0.6335

  • Key Levels

    0.6205, 0.6240, 0.6272, 0.6303, 0.6350, 0.6376, 0.6412

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    0.6340

  • Take Profit

    0.6410

  • Stop Loss

    0.6295

  • Key Levels

    0.6205, 0.6240, 0.6272, 0.6303, 0.6350, 0.6376, 0.6412