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NZD/USD: technical analysis 10.12.19

Current trend

On the 4-hour chart, the instrument went up above the level of 0.65500 (the middle line of Bollinger Bands) and has the potential to further growth to the 4-month high surrounding 0.65755 level.
This level seems a tough resistance which can activate a downward rebound. Meanwhile, the breakout and pair’s sustained trading above 0.67755 will give a prospect of growth to the 0.65918 level.

Alternative scenario

The rebound from 0.65755 and pullback below 0.65500 will be a signal for a downward correction. In this case, the pair will test the 0.65308 support. The downward trend will be restored after the price is set below the level of 0.65250. In this case, the next targets of sellers will be the level of 0.65002.

Technical indicators.

The technical picture is mixed.

Bollinger Bands are pointed upwards.

MACD volumes are decreasing in the positive zone.

Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 0.65308, 0.65002, 0.64697.
Resistance levels: 0.65755, 0.65918, 0.66223.

Trading recommendations

Long positions can be opened above the level of 0.65755 with the target at around 0.65918 and stop-loss at 0.65700.

Short positions can be opened below the level of 0.65500 with the target at around 0.65308 and stop-loss at 0.65564.

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