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NZD/USD: technical analysis 10.01.20

Current trend

On the 4-hour chart, the instrument is correcting up from the lower line of the Bollinger Bands (0.66005) and approaching the 0.66223 resistance. Assuming
the pair’s ability to cross this level, the mark of 0.66353 (middle line of Bollinger bands) can be targeted if holding long positions. As a key correction target, the level of 0.66353 can activate a downward reverse of the price. However, the decisive breakout of this level will be a signal for uptrend resumption and let the price grow to the area of 0.66528-0.66575 resistance.

Alternative scenario

The downward rebound from 0.66223 could lead the price back to 0.66005 support. The downward trend will be restored after the price is set below the level of 0.65918 level. In this case, the next targets of sellers will be the level of 0.65613.

Technical indicators

Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.

Bollinger Bands are pointed downwards.

MACD is growing in the negative zone.

Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 0.66005, 0.65918, 0.65613.
Resistance levels: 0.66223,0.66353, 0.66528.

Trading recommendations

Short positions can be opened below the level of 0.65918 with the target at around 0.65613 and stop-loss at 0.66018.

Long positions can be opened above the level of 0.66223 with the target at around 0.66528 and stop-loss at 0.66123.

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