NZD/USD: technical analysis 02.01.20

Current trend

The NZD/USD pair begins today’s trading with a downward gap. The price is approaching strong support in the region of 0.67139, which coincided with the middle line of Bollinger Bands. Assuming the pair’s ability to cross this level, the mark of 0.66833 can be targeted if holding short positions.

Alternative scenario

The upward rebound from 0.67139 and pullback above 0.67291 will let the price retest the resistance level of 0.67444. One may speak about upward movement continuation after the price consolidates above the resistance level of 0.67546. In this case, the next targets of buyers will be the level of 0.67749-0.68054.

Technical indicators

Technical indicators maintain a sell signal.

Bollinger Bands are diverging on the background of bearish momentum.

MACD volumes are decreasing in the positive zone.

Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 0.67139, 0.66833, 0.66528.
Resistance levels: 0.67291, 0.67444, 0.67546, 0.67749.

Trading recommendations

Short positions can be opened below the level of 0.67139 with the target at around 0.66833 and stop-loss at 0.67241.
Long positions can be opened above the level of 0.67291 with the target at around 0.67546 and stop-loss at 0.67206.

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