NZD/USD: technical analysis
07 August 2018, 14:40
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL LIMIT |
| Entry Point | 0.6790 |
| Take Profit | 0.6720, 0.6670, 0.6575 |
| Stop Loss | 0.6855 |
| Key Levels | 0.6575, 0.6670, 0.6720, 0.6790, 0.6855, 0.6950 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 0.6855 |
| Take Profit | 0.6950 |
| Stop Loss | 0.6825 |
| Key Levels | 0.6575, 0.6670, 0.6720, 0.6790, 0.6855, 0.6950 |
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 above its longer MA. The Composite is falling, having broken down its longer MA.
NZD/USD, H4
On the 4-hour 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 growing, having formed a Bullish divergence with the price. The Composite is showing similar dynamics.
Key levels
Support levels: 0.6720 (local lows), 0.6670 (May 2016 lows), 0.6575 (March 2016 lows).
Resistance levels: 0.6790 (local highs), 0.6855 (May lows), 0.6950 (local highs).
Trading tips
The price keeps forming a correctional triangle. The likely breakout is downward.
Short positions can be opened from the level of 0.6790 with targets at 0.6720, 0.6670, 0.6575 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 0.6950 and stop-loss at 0.6825. 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 above its longer MA. The Composite is falling, having broken down its longer MA.
NZD/USD, H4
On the 4-hour 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 growing, having formed a Bullish divergence with the price. The Composite is showing similar dynamics.
Key levels
Support levels: 0.6720 (local lows), 0.6670 (May 2016 lows), 0.6575 (March 2016 lows).
Resistance levels: 0.6790 (local highs), 0.6855 (May lows), 0.6950 (local highs).
Trading tips
The price keeps forming a correctional triangle. The likely breakout is downward.
Short positions can be opened from the level of 0.6790 with targets at 0.6720, 0.6670, 0.6575 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 0.6950 and stop-loss at 0.6825. Validity – 3-5 days.
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