Current trend
The NZD was growing for a week, so the profit fixing of the long positions were profitable. As a result the NZD/USD pair reversed into the downward correction after the test of the resistance level of 0.7052. The price lowered below the middle line of Bollinger Bands (0.7017) and is moving towards the lower line (0.6990). The breakdown of the level of 0.6990 will let the pair to move to the level of 0.6960. At the level of 0.6960 the reversal and formation of the upward trend is possible.
Support and resistance
The technical indicators reflect the development of the downward trend. Bollinger Bands are narrowing. The MACD histogram is in the positive zone, however its volumes are slightly decreasing, forming a sell signal.
Support levels: 0.7017, 0.6990, 0.6960, 0.6939.
Resistance levels: 0.7052, 0.7089, 0.7134.
Trading scenario
Open short positions from the current level with the target at 0.6990, 0.6960 and stop loss at 0.7036. The buy pending orders can be opened at the level of 0.6960. Take profit is at 0.7017 and stop loss is at 0.6940.
The NZD was growing for a week, so the profit fixing of the long positions were profitable. As a result the NZD/USD pair reversed into the downward correction after the test of the resistance level of 0.7052. The price lowered below the middle line of Bollinger Bands (0.7017) and is moving towards the lower line (0.6990). The breakdown of the level of 0.6990 will let the pair to move to the level of 0.6960. At the level of 0.6960 the reversal and formation of the upward trend is possible.
Support and resistance
The technical indicators reflect the development of the downward trend. Bollinger Bands are narrowing. The MACD histogram is in the positive zone, however its volumes are slightly decreasing, forming a sell signal.
Support levels: 0.7017, 0.6990, 0.6960, 0.6939.
Resistance levels: 0.7052, 0.7089, 0.7134.
Trading scenario
Open short positions from the current level with the target at 0.6990, 0.6960 and stop loss at 0.7036. The buy pending orders can be opened at the level of 0.6960. Take profit is at 0.7017 and stop loss is at 0.6940.