Review and dynamics
On the daily chart the price has consolidated below the key support levels of 0.6795 (ЕМА200) and 0.6765 (ЕМА144).In mid-April the pair NZD/USD reached the highs at the level of 0.7050 and after that started to decline. The decline in the pair accelerated at the beginning of May.

The decline was caused by the rise in the USD in the currency market and decline in the NZD. Poor macro-economic statistics of New Zealand and adherence of the RBNZ to the soft monetary policy put pressure on the NZD. The pair NZD/USD fell by 5% from the level of 0.7050, 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) and 0.6765 (ЕМА144).

Today, the decline continues and the pair remains in the ascending channel on the weekly chart.

Our opinion
On the daily, weekly and 4-hour charts the indicators OsMA and Stochastic give signals to open short positions. On 4-hour chart the decline goes in the descending channel (Purple color) with the lower limit at the level of 0.6660 and the upper limit of 0.6780.

After breaking out of support level of 0.6700, the pair will continue to decline to 0.6660, 0.6560 (lower line of the ascending channel on the weekly chart).

Breakout of this level may trigger further decline with the targets of 0.6400, 0.6300 (lows of 2015).

As an alternative scenario the pair can break up resistance levels of 0.6795, 0.6860 and continue to rise in the ascending channel on the daily chart with the upper limit at the level of 0.7240 (Fibonacci 38.2%) and the nearest targets of 0.6980, 0.7050 (highs of May and April, ЕМА200 on the monthly chart).

Support levels: 0.6720, 0.6700, 0.6660, 0.6610 and 0.6560.
Resistance levels: 0.6765, 0.6795, 0.6820, 0.6860, 0.6910, 0.6980 and 0.7050.

Trading tips
Sell on the market. Stop-Loss: 0.6770. Take-Profit: 0.6700, 0.6660, 0.6610, 0.6560 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.

Below the levels of 0.6795 and 0.6765
Below the levels of 0.6795 and 0.6765

In the ascending channel
In the ascending channel

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