NZD/USD: technical analysis
22 May 2018, 11:22
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 0.6990 |
| Take Profit | 0.7050, 0.7095 |
| Stop Loss | 0.6940 |
| Key Levels | 0.6690, 0.6800, 0.6850, 0.6990, 0.7050, 0.7095 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 0.6800 |
| Take Profit | 0.6690 |
| Stop Loss | 0.6850 |
| Key Levels | 0.6690, 0.6800, 0.6850, 0.6990, 0.7050, 0.7095 |
NZD/USD, D1
On the daily chart, the pair is trading on the middle MA of the Bollinger Bands. The price remains below the EMA65, EMA130 and SMA200 that are directed down. The RSI is testing from below its longer MA, having just left the oversold zone. The Composite is approaching its strong resistance.
NZD/USD, H4
On the 4-hour chart, the pair is trading above the upper line of the Bollinger Bands. The price remains above the EMA14, EMA65 that start turning up, and below the EMA130, SMA200 that are directed down. The RSI is about to test the border of the overbought zone. The Composite has reached its strong resistance region.
Key levels
Support levels: 0.6850 (local lows), 0.6800 (November 2017 lows), 0.6690 (May 2016 lows).
Resistance levels: 0.6990 (November 2017 highs), 0.7050 (local highs), 0.7095 (local highs).
Trading tips
The price has tested its long-term ascending trendline. The upward correction could continue.
Long positions can be opened from the level of 0.6990 with targets at 0.7050, 0.7095 and stop-loss at 0.6940. Validity – 3-5 days.
Short positions can be opened from the level of 0.6800 with the target at 0.6690 and stop-loss at 0.6850. Validity – 3-5 days.
On the daily chart, the pair is trading on the middle MA of the Bollinger Bands. The price remains below the EMA65, EMA130 and SMA200 that are directed down. The RSI is testing from below its longer MA, having just left the oversold zone. The Composite is approaching its strong resistance.
NZD/USD, H4
On the 4-hour chart, the pair is trading above the upper line of the Bollinger Bands. The price remains above the EMA14, EMA65 that start turning up, and below the EMA130, SMA200 that are directed down. The RSI is about to test the border of the overbought zone. The Composite has reached its strong resistance region.
Key levels
Support levels: 0.6850 (local lows), 0.6800 (November 2017 lows), 0.6690 (May 2016 lows).
Resistance levels: 0.6990 (November 2017 highs), 0.7050 (local highs), 0.7095 (local highs).
Trading tips
The price has tested its long-term ascending trendline. The upward correction could continue.
Long positions can be opened from the level of 0.6990 with targets at 0.7050, 0.7095 and stop-loss at 0.6940. Validity – 3-5 days.
Short positions can be opened from the level of 0.6800 with the target at 0.6690 and stop-loss at 0.6850. Validity – 3-5 days.
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