NZD/USD: technical analysis
18 May 2018, 13:17
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 0.6850 |
| Take Profit | 0.6815, 0.6780 |
| Stop Loss | 0.6875 |
| Key Levels | 0.6780, 0.6815, 0.6850, 0.6930, 0.6970, 0.6995 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 0.6930 |
| Take Profit | 0.6970, 0.6995 |
| Stop Loss | 0.6905 |
| Key Levels | 0.6780, 0.6815, 0.6850, 0.6930, 0.6970, 0.6995 |
NZD/USD, D1
On the daily chart, the pair is trading in the lower Bollinger band. The price remains below its moving averages that are directed down. The RSI is testing from below the border of the oversold zone. The Composite is testing its longer MA, having formed a Bullish divergence with the price.
NZD/USD, H4
On the 4-hour chart, the pair is trading in the upper Bollinger band. The price remains below the EMA65, EMA130 and SMA200 that are directed down. The RSI is testing its strong resistance. The Composite is growing as well, having broken out its longer MA.
Key levels
Support levels: 0.6850 (local lows), 0.6815 (May 2017 lows), 0.6780 (November 2017 lows).
Resistance levels: 0.6930 (local highs), 0.6970 (local highs), 0.6995 (local highs).
Trading tips
The price is consolidating below its long-term ascending trendline. A breakdown of local lows would allow the fall to continue. However, there is a chance of an upward correction.
Short positions can be opened from the level of 0.6850 with targets at 0.6815, 0.6780 and stop-loss at 0.6875. Validity – 3-5 days.
Long positions can be opened from the level of 0.6930 with targets at 0.6970, 0.6995 and stop-loss at 0.6905. Validity – 3-5 days.
On the daily chart, the pair is trading in the lower Bollinger band. The price remains below its moving averages that are directed down. The RSI is testing from below the border of the oversold zone. The Composite is testing its longer MA, having formed a Bullish divergence with the price.
NZD/USD, H4
On the 4-hour chart, the pair is trading in the upper Bollinger band. The price remains below the EMA65, EMA130 and SMA200 that are directed down. The RSI is testing its strong resistance. The Composite is growing as well, having broken out its longer MA.
Key levels
Support levels: 0.6850 (local lows), 0.6815 (May 2017 lows), 0.6780 (November 2017 lows).
Resistance levels: 0.6930 (local highs), 0.6970 (local highs), 0.6995 (local highs).
Trading tips
The price is consolidating below its long-term ascending trendline. A breakdown of local lows would allow the fall to continue. However, there is a chance of an upward correction.
Short positions can be opened from the level of 0.6850 with targets at 0.6815, 0.6780 and stop-loss at 0.6875. Validity – 3-5 days.
Long positions can be opened from the level of 0.6930 with targets at 0.6970, 0.6995 and stop-loss at 0.6905. Validity – 3-5 days.
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