From the lows of August at the level of 0.6200, pair NZD/USD has increased by 600 points, reaching the level of 0.6860 (Fibonacci 23.6%) by the end of 2015.
However, amid sharp decline in the Chinese and global stock markets since the beginning of this year and significant drop of oil and commodity prices, the pair NZD/USD has retarded the local growth and is now traded at the resistance levels of 0.6540 (ЕМА144 on the four-hour chart), 0.6585 (ЕМА50 on the daily chart).
ON the four-hour chart the indicators OsMA and Stochastic are moving towards the short positions. The pair is declining in the downward channel on the weekly chart with the bottom limit at the level of 0.6300.
On the weekly chart the indicators are give sell signals.
Based on the indicators, it is recommended to open short positions below the level of 0.6490 (ЕМА200 on the daily chart) with the target of 0.6430, 0.6370 and 0.6300.
If the price consolidates above the level of 0.6585, the decline in price will not take place.
Support levels: 0.6490, 0.6430, 0.6370, 0.6300 and 0.6230.
Resistance levels: 0.6540, 0.6565, 0.6585 and 0.6680.
Sell Stop: 0.6480. Stop-Loss: 0.6520. Take-Profit: 0.6430, 0.6370, 0.6300 and 0.6230.
Buy Stop: 0.6610. Stop-Loss: 0.6570. Take-Profit: 0.6680, 0.6785 and 0.6860.