Review and dynamics
Following the large-scale rise in the USD for almost three weeks, the pair NZD/USD has been undergoing upward correction for the third day, rising above the resistance level of 0.7075 (ЕМА200 on the daily chart), and approaching the resistance level of 0.7110 (ЕМА144 on the daily chart).
The pair NZD/USD has bounced from the lower limit of the new descending channel on the daily chart near the level of 0.6975. On 4- hour and daily charts the indicators OsMA and Stochastic give signals for the long positions.
In the case of breakout of the resistance levels of 0.7110 and 0.7140 (ЕМА200 on 4-hour chart) the pair may continue grow up to the resistance level of 0.7240 (Fibonacci 38.2% after the decline in pair from the level of 0.8800 in July 2014 and ЕМА144 on the weekly chart) and 0.7340 (ЕМА200 on the weekly chart).
The USD has significantly grown against almost all currencies after the US elections; but now it seems to undergo correction. Probably the USD needs some rest before continuing further growth.
The pair NZD/USD remains in the ascending channel on the weekly chart with the upper limit above the resistance level of 0.7550 (Fibonacci 50.0%).
As long as the pair NZD/USD remains above the support level of 0.7075 (ЕМА200 on the daily chart), the uptrend in the pair will continue.
Short positions are preferable.
Support levels: 0.7075, 0.7050, 0.6975, 0.6930, 0.6900 and 0.6860.
Resistance levels: 0.7110, 0.7140, 0.7240, 0.7380, 0.7485 and 0.7550.
Sell on the market. Stop-Loss: 0.7110. Take-Profit: 0.7075, 0.7050, 0.6975, 0.6930, 0.6900 and 0.6860.
Buy Stop: 0.7120. Stop-Loss: 0.7080. Take-Profit: 0.7140, 0.7240, 0.7380, 0.7485 and 0.7550.
Rebound from the level of 0.6975
Indicators give signals for long positions