2016-07-14 14:38:14

Review and dynamics
Since September 2015 the pair NZD / USD has been in the ascending channel on the weekly chart with the upper limit near the level of 0.7380 (EMA200 on the weekly chart). After reaching new annual highs at 0.7320 (upper line of the ascending channel on the daily chart), the pair NZD / USD fell today, breaking the nearest support levels of 0.7290 (EMA144 on the weekly chart), 0.7240 (Fibonacci 38.2% to the decline in the pair from the level of 0.8800 since July 2014).

Currently, the price is at the level of 0.7220 (EMA144 on the monthly chart), which will become a resistance level in case of the further rise in the pair. Thus, the pair NZD / USD is in the zone of key support/resistance levels. However, further movement in the pair will be determined by fundamental data. If Europe quickly overcomes problems caused by Brexit and the US Fed continues to postpone the rise in the interest rate, the pair NZD/USD will continue to grow.

Our opinion
On the daily, weekly and monthly charts the indicators OsMA and Stochastic give sell signals. If downward correction in the pair continues, support line for the pair will be at the level of 0.7170 (lower line of the ascending channel on 4-hour chart), 0.7140 (ЕМА144), 0.7100 (ЕМА200 on 4-hour chart).

If the indicators on 4-hour chart begin to give buy signals, long positions will be advisable. Limit orders to buy can be placed above support levels of 0.7170, 0.7140 and 0.7100.

If the pair breaks down the level of 0.7100, the decline can continue to 0.6860 (Fibonacci 23.6%, ЕМА200, ЕМА144 on the daily chart).

If the rise continues and the price breaks out the levels of 0.7290 and 0.7320, the pair NZD/USD can reach the level of 0.7380 (ЕМА200 on the weekly chart and ЕМА50 on the monthly chart) and 0.7550 (Fibonacci 50.0%).

Support levels: 0.7220, 0.7170, 0.7140 and 0.7100

Resistance levels: 0.7240, 0.7290 and 0.7320

Trading tips
Sell Stop: 0.7180. Stop-Loss: 0.7250. Take-Profit: 0.7140, 0.7100, 0.7000, 0.6900 and 0.6860.
Buy Stop: 0.7250. Stop-Loss: 0.7190. Take-Profit: 0.7290, 0.7320, 0.7380 and 0.7550.

In the ascending channel
In the ascending channel

Resistance levels: 0.7290 and 0.7380
Resistance levels: 0.7290 and 0.7380