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NZD/USD: technical analysis 05.12.2019

Current trend

NZS/USD is in the stage of a downward correction after growing to the level of 0.65613. If the sellers manage to decline the rate below the level of 0.65308, the correction can continue to the area of 0.65155, 0.65002. The area of 0.65002 level seems a key correction target and can activate an upward rebound. However, the breakdown and pair’s sustained trading below 0.65000 will be a signal for downward trend resumption and let the price fall to 0.64850-0.64697 area.

Alternative scenario

The upward rebound from 0.65308 support could lead the price back to 0.65613 resistance.
The decisive break of 0.65613 is needed to indicate uptrend resumption. In this case, the next targets of buyers will be the level of 0.65863

Technical indicators mostly reflect the maintenance of the downward movement potential.
Bollinger Bands are converging on the background of bearish momentum.
Stochastic is pointed downwards, reflecting the high possibility of the downward movement formation.
MACD is in the positive zone, keeping a buy signal.

Support and resistance

Support levels: 0.65308, 0.65155, 0.65002.
Resistance levels: 0.65460, 0.65613, 0.65683.

Trading recommendations

Short positions can be opened below the level of 0.65308 with the target at around 0.65002 and stop-loss at 0.65405.
Long positions can be opened above the level of 0.65460 with the target at around 0.65613-0.65700 and stop-loss at 0.65380.

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