NZD/USD quotes have broken the upper border of the upward channel this week and reached a 2-month high at a level of 0.7697 on Tuesday. Today, the price has corrected, dropping to a level of 0.7600 (middle line of Bollinger bands) but failed to break it. The upper border of the former upward channel is likely to turn into the lower one of a new channel. Bulls' nearest target and the reversal point thus could be a level of 0.7710. Its breakdown will probably allow the price to rise to the levels 0.7765 and 0.7850 in the medium term.
Support and resistance levels
Technical indicators are producing opposite signals, pointing to market uncertainty ahead of the publication of fundamental February's statistics for US durable goods orders and annual data on US GDP. The price has pushed off from the middle line of Bollinger bands as a sign of probable growth. The upper and lower lines have started to narrow, as it happens prior to a sharp price movement. The MACD histogram is situated in the positive zone and its volumes are stable. Stochastic lines are turning upwards.
Support levels: 0.7600, 0.7547, 0.7450.
Resistance levels: 0.7710, 0.7765, 0.7850.
This situation suggests that long positions with a target at 0.7710 can be opened at current price. In case this level is broken, bulls' new target will be a level of 0.7765. It would be also wise to place Pending Sell orders at the level of 0.7710 with a target at about 0.7620.