Review and dynamics
Yesterday (23:00 GMT+2), the RBNZ presented new economic forecast and the Governor of the RBNZ Graeme Wheeler said that more monetary policy easing is required in the country. On these facts the NZD sharply fell in the currency market. The decline in the pair, which started at the beginning of this week, continued.
Within two weeks the pair NZD/USD dropped by over 300 points, to the closing level of April.
After reaching the new annual highs at the level of 0.7320 (upper line of the ascending channel on the daily chart), the pair NZD/USD has been declining for the seven consecutive sessions, going to the important support levels of 0.6895 (ЕМА200, ЕМА144 on the daily chart), 0.6860 (Fibonacci 23.6% to the decline from the level of 0.8800, since July 2014 and the lower line of the ascending channel on the daily chart).
Breakdown of the level of 0.6860 will trigger further decline in the pair NZD/USD. Downtrend in the pair can resume.
On the daily and weekly charts the indicators OsMA and Stochastic give signals to sell. On the monthly chart the indicators also give signals for short positions.
It is likely that the pair NZD/USD will continue to decline. Short term upward correction is possible, but it will not go beyond resistance levels of 0.7045 (ЕМА50 on the daily chart, ЕМА200 on the monthly chart) and 0.7100 (ЕМА200, ЕМА144 on 4-hour chart).
Support levels: 0.6895 and 0.6860.
Resistance levels: 0.7000, 0.7045, 0.7100, 0.7130, 0.7200, 0.7240, 0.7290 and 0.7320.
Sell on the market. Stop-Loss: 0.7030. Take-Profit: 0.6900, 0.6860 and 0.6800.
Buy Stop: 0.7030. Stop-Loss: 0.6980. Take-Profit: 0.7045, 0.7100, 0.7130, 0.7200, 0.7240, 0.7290 and 0.7320.
In the ascending channel
To support levels of 0.6895 and 0.6860