NZD/USD: technical analysis 07.10.2019

Current trend

On 4-hour chart, the instrument shows a mixed dynamic. NZD/USD bounced off the 0.62998 support but is yet to cross the 0.63215 level that impedes growth to 0.63224 (Murray [7/8]) resistance. If NZD/USD cannot consolidate above the level of 0.63215 during short term period, the downward movement restoration and retest of the level 0.62998 are possible. The downward trend will be restored after the price is set below the level of 0.62866 (Murray [4/8]), which is the middle line of Bollinger Bands. In this case, the next targets of sellers will be the level of 0.62714 (Murray [3/8]).
Alternative scenario. Pullback and price sustained trading above the level of 0.63224 will let the price to grow to the area of 0.63477 (Murray [8/8]). The breakout of 0.63477 can accelerate the pair towards 0.63629 (Murray [+1/8]). The technical picture is mixed. Bollinger Bands are pointed upwards. The volumes of MACD histogram are slowly decreasing in the positive zone. Stochastic is pointed upwards, reflecting the high possibility of the upward movement formation.

Support and resistance

Support levels: 0.63019, 0.62866, 0.62714.
Resistance levels: 0.63171, 0.63324, 0.63477.

Trading recommendations

Short positions can be opened below the level of 0.63019 with the target at around 0.62866-0.62714 and stop-loss 0.63120.
Long positions can be opened above the level of 0.63171 with the target at around 0.63324-0.63477 and stop-loss 0.63069.

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