Review and dynamics
Since the beginning of this month the pair NZD/USD has been declining, due to strengthening in the USD and dynamics of the New Zealand currency. The decisions of RBNZ in March to reduce interest rate and the fact that the Bank adheres to the soft monetary policy put pressure on the NZD.

From the highs of 0.7050, reached earlier this month, the pair NZD/USD fell by 4%, breaking out important support levels of 0.6860 (Fibonacci 23.6% to the decline in the pair from the level of 0.8800, in July 2014 and ЕМА50 on the weekly chart), 0.6795 (ЕМА200 on the daily chart).

Our opinion
On 4-hour, daily and weekly charts the indicators OsMA and Stochastic give signals for short positions. 

Breakout of the support levels of 0.6765 and 0.6740 (lower line of the ascending channel on the daily chart) will trigger further decline with the targets of 0.6600 and 0.6400.

As an alternative scenario the pair can breakout resistance level of 0.6860 and go up in the ascending channel on the daily chart with the upper limit of 0.7135 and the nearest targets of 0.6980 and 0.7050 highs of may and April, ЕМА200 on the monthly chart).

Support levels: 0.6765, 0.6740, 0.6700 and 0.6610
Resistance levels: 0.6795, 0.6860, 0.6910, 0.6980 and 0.7050.

Trading tips
Sell on the market. Stop-Loss: 0.6810. Take-Profit: 0.6740, 0.6700, 0.6650, 0.6610 and 0.6400
Buy Stop: 0.6820. Stop-Loss: 0.6780. Take-Profit: 0.6860, 0.6900, 0.6980, 0.7000, 0.7050, 0.7100 and 0.7240

Indicators suggest to open short positions
Indicators suggest to open short positions

at support level of 0.6765
at support level of 0.6765

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