NZD/USD: technical analysis 09.10.2019
On the 4-hour chart, the instrument is trading above the middle line of Bollinger Bands (0.63060) suggesting bullish momentum. Meanwhile the level of 0.63171 (Murray [6/8]) seem a strong hurdle for NZD/USD. The breakout and consolidation of the price above this level will let NZD/USD reach the level of 0.63324 (Murray [7/8]). Should prices continue growing above 0.63324 mark, the level of 0.63371-0.63477 (Murray [8/8]) might try activating a downward rebound.
Alternative scenario. If the sellers manage to decline the rate below the level of 0.63051, the correction can continue to the area of 0.62866 (Murray [4/8]). The level of 0.62866 seem a key level for the sellers. The breakdown and pair’s sustained trading below this level will let the price fall to the 0.62714 mark.
Technical indicators mostly reflect the maintenance of the upward potential. MACD is slowly growing in the positive zone. Stochastic is pointed upwards. Bollinger Bands are pointed sideways.
Support and resistance
Support levels: 0.63060, 0.62866, 0.62714.
Resistance levels: 0.63171, 0.63324, 0.63477.
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.
Short positions can be opened below the level of 0.63051 with the target at around 0.62866-0.62714 and stop-loss 0.63163.