NZD/USD, D1
On the daily chart, the pair is correcting from the lower line of the Bollinger Bands. The price remains below its moving averages that are directed down. The RSI is testing from below its longer MA, having left the oversold zone. The Composite is growing, having broken out its longer MA.
NZD/USD, H4
On the 4-hour chart, the instrument is trading in the upper Bollinger band. The price remains below the EMA65, EMA130 and SMA200 that are directed down. The RSI is turning down, having tested its strong resistance slightly below the border of the overbought zone. The Composite is testing from above its longer MA.
Key levels
Support levels: 0.6545 (local lows), 0.6490 (July 2015 lows), 0.6460 (September 2015 highs).
Resistance levels: 0.6740 (local highs), 0.6855 (July highs), 0.7020 (local highs).
Trading tips
The upward correction could continue in the short-term, after which the fall will resume.
Pending sell orders can be placed at the level of 0.6740 with targets at 0.6545, 0.6490, 0.6460 and stop-loss at 0.6855. Validity – 3-5 days.
Long positions can be opened from the level of 0.6855 with the target at 0.7020 and stop-loss at 0.6770. Validity – 3-5 days.
Trade
Scenario
Timeframe Weekly
Recommendation SELL LIMIT
Entry Point 0.6740
Take Profit 0.6545, 0.6490, 0.6460
Stop Loss 0.6855
Key Levels 0.6460, 0.6490, 0.6545, 0.6740, 0.6855, 0.7020
Alternative scenario
Recommendation BUY STOP
Entry Point 0.6855
Take Profit 0.7020
Stop Loss 0.6770
Key Levels 0.6460, 0.6490, 0.6545, 0.6740, 0.6855, 0.7020
On the daily chart, the pair is correcting from the lower line of the Bollinger Bands. The price remains below its moving averages that are directed down. The RSI is testing from below its longer MA, having left the oversold zone. The Composite is growing, having broken out its longer MA.
NZD/USD, H4
On the 4-hour chart, the instrument is trading in the upper Bollinger band. The price remains below the EMA65, EMA130 and SMA200 that are directed down. The RSI is turning down, having tested its strong resistance slightly below the border of the overbought zone. The Composite is testing from above its longer MA.
Key levels
Support levels: 0.6545 (local lows), 0.6490 (July 2015 lows), 0.6460 (September 2015 highs).
Resistance levels: 0.6740 (local highs), 0.6855 (July highs), 0.7020 (local highs).
Trading tips
The upward correction could continue in the short-term, after which the fall will resume.
Pending sell orders can be placed at the level of 0.6740 with targets at 0.6545, 0.6490, 0.6460 and stop-loss at 0.6855. Validity – 3-5 days.
Long positions can be opened from the level of 0.6855 with the target at 0.7020 and stop-loss at 0.6770. Validity – 3-5 days.
Trade
Scenario
Timeframe Weekly
Recommendation SELL LIMIT
Entry Point 0.6740
Take Profit 0.6545, 0.6490, 0.6460
Stop Loss 0.6855
Key Levels 0.6460, 0.6490, 0.6545, 0.6740, 0.6855, 0.7020
Alternative scenario
Recommendation BUY STOP
Entry Point 0.6855
Take Profit 0.7020
Stop Loss 0.6770
Key Levels 0.6460, 0.6490, 0.6545, 0.6740, 0.6855, 0.7020