Review and dynamics
The pair NZD/USD remains in the ascending channel on the weekly chart with the upper limit above resistance level of 0.7550 (Fibonacci 50.0% after the decline in the pair from 0.8800 since July 2014).
In August the pair NZD/USD failed to rise above resistance level of 0.7380 (ЕМА200 on the weekly chart). The pair went down to support level of 0.7055 (ЕМА200 and the lower limit of the ascending channel on the daily chart) declining by 5.7% or 400 points.
On 4- hour and daily charts the indicators OsMA and Stochastic give signals to sell.
It seems that downward correction and the decline in the pair continue. The pair NZD/USD has approached support level of 0.7100 (ЕМА144 on the daily chart). If the price breaks down this level, the decline will continue with the target of 0.7055. Breakdown of this key support level may trigger further decline to support level of 0.6860 (Fibonacci 23.6%).
As an alternative scenario the pair can break out resistance levels of 0.7190 and 0.7240 (Fibonacci 38.2%). If the price consolidates above this level it will be advisable to open long positions with the target of 0.7380 (ЕМА200 on the weekly chart). Breakout of the resistance level of 0.7380 will trigger further rise in the pair in the ascending channel on the weekly chart.
As long as the pair NZD/USD maintains position above support level of 0.7055, uptrend will continue.
Support levels: 0.7100, 0.7085, 0.7055, 0.6975, 0.6930, 0.6900 and 0.6860.
Resistance levels: 0.7190, 0.7240, 0.7275, 0.7380 and 0.7485.
Sell on the market. Stop-Loss: 0.7170. Take-Profit: 0.7100, 0.7085, 0.7055, 0.6975, 0.6930, 0.6900 and 0.6860
Buy Stop: 0.7170. Stop-Loss: 0.7130. Take-Profit: 0.7200, 0.7240, 0.7275, 0.7380 and 0.7485.
In the ascending channel
Above the key level of 0.7055