NZD/USD: technical analysis 15.05.2019

NZD/USD: technical analysis 15.05.2019

Current trend

On the 4-hour chart, the instrument is falling along the lower line of the Bollinger Bands. At the moment the price has met the support at the level of 0.6561 (Murray [3/8]). The breakdown of this level will let NZD/USD fall to the level of 0.6530 (Murray [2/8]). The area of 0.6530 level is a tough support zone, where is a chance of an upward rebound, while its breakdown would allow the fall to continue. If the instrument cannot consolidate below the level of 0.6561 in short term period, it will begin to grow to the area of 0.6581 (middle line of Bollinger Bands). Additionally, pair’s sustained trading beyond the 0.6581 could set up the levels of 0.6591 (Murray [3/8])-0.6622 (Murray [4/8]) on buyers’ radar. Technical indicators reflect the moderate maintenance of the current downward trend. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is in the oversold and is pointed sideways.

Support and resistance

Support levels: 0.6561, 0.6530, 0.6500, 0.6469.
Resistance levels: 0.6591, 0.6622, 0.6652, 0.6683.

Trading recommendations

Short positions can be opened below the level of 0.6561 with the target at around 0.6530 and stop-loss 0.6571.
Long positions can be above the level of 0.6581 with the target at around 0.6622 and stop-loss 0.6568.