Review and dynamics
Since the opening of today’s trading day of the new month the USD has been declining in the market. It seems that high volatility of this week continues. Tomorrow at (16:30 GMT+3), US labor data will be released.
The NZD in the pair NZD/USD was stable against the USD. The pair NZD/USD managed to go up above the levels of 0.7075 (ЕМА200), 0.7110 (ЕМА144), 0.7145 (ЕМА50 on the daily chart).
However it is unlikely that the rise will continue. Yesterday the pair NZD/USD dropped to support level of 0.7075 (ЕМА200 on the daily chart) amid OPEC’s decision to cut oil output and the rise in oil prices.
On the 4-hour, weekly, monthly and daily charts the indicators OsMA and Stochastic give signals for short positions.
Breakdown of support level of 0.7075 will trigger the decline in the pair NZD/USD to the lower limit of the descending channel to the level of 0.6975 on the daily chart. In case of breakdown of this level the decline may continue 0.6860 (Fibonacci 23.6% after the decline from 0.8800 since July 2014).
If the pair goes up to resistance levels of 0.7110 and 0.7145 the rise may continue up to resistance level of 1.7240 (Fibonacci 38.2% and ЕМА144 on the weekly chart), 0.7340 (ЕМА200 on the weekly chart).
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%).
As long as the pair NZD/USD remains above support level of 0.7075 (ЕМА200 on the daily chart), uptrend in the pair will continue.
Support levels: 0.7075, 0.7050, 0.6975, 0.6930, 0.6900 and 0.6860.
Resistance levels: 0.7110, 0.7145, 0.7240, 0.7380, 0.7485 and 0.7550.
Sell on the market. Stop-Loss: 0.7120. Take-Profit: 0.7050, 0.6975, 0.6930, 0.6900 and 0.6860.
Buy Stop: 0.7120. Stop-Loss: 0.7070. Take-Profit: 0.7140, 0.7240, 0.7380, 0.7485 and 0.7550.
In the ascending channel
At support level of 0.7075