Review and dynamics
The pair NZD/USD has sharply grown in the past three days due to positive macro-economic statistics of New Zealand and the rise in price of the dairy products in the world market. The pair has grown by 150 points against the closing price of the previous month.
The pair has broken out the key resistance levels of 0.7240 (Fibonacci 38.2% after the decline in pair from the level of 0.8800, since July 2014) and 0.7275 (ЕМА144 on the weekly chart).
Today, the pair NZD/USD has been growing since the opening of the trading day, remaining in the upward channel on the weekly chart with the upper limit above the resistance level of 0.7550 (Fibonacci 50.0%).
On the daily and weekly charts the indicators OsMA and Stochastic give buy signals. However, on the hourly and 4-hour charts the indicators give signals for short positions.
If the price drops below $0.7275, downward correction may develop to support level of 0.7240 (Fibonacci 38.2%). In case of breakdown of the support level of 0.7195 (ЕМА200 on 4-hour chart) the pair may continue to decline to support levels of 0.7100 (ЕМА144 on the daily chart) and 0.7065 (ЕМА200 and the lower limit of the ascending channel on the daily chart).
Long positions will be advisable in case of breakout of the resistance level 0.7330 (today's highs), with the target of 0.7380 (ЕМА200 on the weekly chart).
Breakout of the resistance level of 0.7380 may trigger further rise in the pair in the upward channel on the weekly chart.
As long as the pair NZD/USD remains above support level of 0.7065, the uptrend will continue.
Breakdown of the key support level may trigger further decline to support level of 0.6860 (Fibonacci 23.6%).
Support levels: 0.7275, 0.7240, 0.7195, 0.7100, 0.7065, 0.6975, 0.6930, 0.6900 and 0.6860.
Resistance levels: 0.7330, 0.7380 and 0.7485.
Breakout of 0.7275
Above the level of 0.7065