NZD/USD: technical analysis 21.02.20

Current trend

On the 4-hour chart, the instrument keeps a negative dynamic. The price went down below the level of 0.63171 and can fall further to the levels of 0.62866. This level seems strong support, which can activate an upward reverse of the price. The decisive breakdown of 0.62866 could trigger a pair’s active decline to local min surrounding 0.62500.

Alternative scenario

The pullback above 0.63171 and the pair’s sustained trading above it will be a signal of upward correction development and give a prospect of growth to the area of 0.63324 level. This mark will be a key target of the upward correction. There is a chance of a downward rebound, while its breakout would allow the growth to continue to the area of 0.63477.

Technical indicators

Technical indicators maintain a sell signal.

Bollinger Bands are diverging on the background of bearish momentum.

MACD is growing in the negative zone.

Stochastic’s lines are in the oversold zone and are pointed sideways.

Support and resistance

Support levels: 0.63073, 0.62866, 0.62500.
Resistance levels: 0.63171, 0.63477, 0.63782.

Trading recommendations

Short positions can be opened below the level of 0.63073 with the target at around 0.62866 and stop-loss at 0.63142.
Long positions can be opened above the level of 0.63171 with the target at around 0.63477 and stop-loss at 0.63071.

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