Review and dynamics
On Monday the pair NZD/USD rebounded from important support level of 0.7240 (ЕМА50 on the daily chart and Fibonacci of 38.2% after the decrease in pair from the level of 0.8800, since July 2014). This level is crossed by the lower limit of the ascending channel on the daily chart. On the weekly chart the pair NZD/USD is also in the ascending channel, with the upper limit neat the level of 0.7550 (Fibonacci 50.0%).
In our previous review, we assumed that the pair would rise up to the resistance level of 0.7550 (Fibonacci retracement of 50.0%) after breakout of the resistance level of 0.7380.
Due to the decline in the USD in the currency market, the pair NZD/USD is resuming its positive position. And if the decline in the USD continues, the rise in the pair may continue until at least 9 November, when a meeting of the RBNZ will be held.
In the case of breakdown of the support level 0.7240 the pair may continue to decline to the level of 0.7030 (ЕМА200 on the daily chart and the lower line of the ascending channel on the weekly chart). If the pair breaks down the level of 0.6860 (Fibonacci 23.6%) uptrend will terminate.
On the 4-hour chart the indicators OsMA and Stochastic give signals to buy; on the daily chart the indicators also give signals for long positions. Breakout of the resistance level of 0.7550 may indicate the end of the downward correction and resumption of the uptrend.
Support levels: 0.7290, 0.7240, 0.7200, 0.7115, 0.7085, 0.7030, 0.6975, 0.6930, 0.6900 and 0.6860.
Resistance levels: 0.7380, 0.7420 and 0.7550.
Sell Stop: 0.7280. Stop-Loss: 0.7320. Take-Profit: 0.7240, 0.7200, 0.7115, 0.7085, 0.7030, 0.6975 and 0.6860.
Buy Stop: 0.7335. Stop-Loss: 0.7280. Take-Profit: 0.7380, 0.7420, 0.7500 and 0.7550.
Rebound from the level of 0.7240
In the ascending channel