Review and dynamics
Amid high volatility in the financial markets caused by the announcement of the first results of the presidential elections in the United States, the USD fell sharply against the Euro and safe-haven assets, but has grown against commodity currencies, including the pair NZD/USD.
Today, since the beginning of the trading day the pair NZD/USD has declined by over 110 points, to support level of 0.7275 (ЕМА200 on the hourly chart, ЕМА144 on the weekly chart).
During the Asian session the pair NZD/USD has grown by 30 points in the upward correction continued and at the beginning of the European session the pair is traded at the level of 0.7300.
At the beginning of the month the pair NZD/USD rose sharply, breaking down key resistance levels of 0.7240 (Fibonacci 38.2% after the decline the level of 0.8800 since July 2014) and 0.7275 (ЕМА144 on the weekly chart) due to positive macro-economic data and the rise in price of the dairy products in the world market. Despite today's decline, the pair NZD/USD remains in the ascending channel on the weekly chart with the upper limit above resistance level of 0.7550 (Fibonacci 50.0%).
On the hourly, 4-hour and daily charts the indicators OsMA and Stochastic give sell signals.
If the price drops below $0.7275, the decline may continue up to support level of 0.7240 (Fibonacci 38.2%).
Breakdown of this level will trigger further decline and the pair NZD/USD can reach support level of 0.7075 (ЕМА200 on the daily chart, ЕМА50 and the lower line of the ascending channel on the weekly chart).
In the case of breakout of resistance level of 0.7380 (ЕМА200 on the weekly chart) the pair may go up in the ascending channel on the weekly chart. As long as the pair NZD/USD is above support level of 0.7075, uptrend will continue.
Support levels: 0.7275, 0.7240, 0.7195, 0.7100, 0.7075, 0.6975, 0.6930, 0.6900 and 0.6860.
Resistance levels: 0.7380, 0.7485 and 0.7550.
Sell on the market. Stop-Loss: 0.7340. Take-Profit: 0.7275, 0.7240, 0.7100, 0.7075, 0.6975, 0.6930 and 0.6900.
Buy Stop: 0.7340. Stop-Loss: 0.7290. Take-Profit: 0.7380, 0.7485 and 0.7550.
Rebound from the level of 0.7380
Above the level of 0.7075