NZD/USD: technical analysis 11.10.2019
NZD/USD quotes attempted to grow, but reaching 0.63293 mark moved to a downward correction. If the sellers manage to decline the rate below the level of 0.63171, the correction can continue to the area of 0.63100, which coincided with the middle line of Bollinger Bands.
Assuming the pair’s ability to cross 0.63100 mark, the level of 0.63019-0.62866 can be targeted if holding short positions. The key “bearish” level is 0.62866 at the lower line of Bollinger bands. The consolidation below it will give the prospect of fall to the levels of 0.62714.
Alternative scenario. If NZD/USD cannot consolidate below the level of 0.63100 during short term period, the upward movement restoration and retest of the resistance 0.63324 level are possible. Decisive breakout of 0.63324 is needed to indicate the upward trend resumption. In this case, the buyers will aim for the area of 0.63477-0.63629 levels.
On 4-hour chart, technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. Bollinger Bands are converging on the background of bullish momentum. MACD is slowly growing in the positive zone. Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 0.63171, 0.63019, 0.62866, 0.62714.
Resistance levels: 0.63324, 0.63477, 0.63629.
Short positions can be opened below the level of 0.63100 with the target at around 0.62866 and stop-loss at 0.63178.
Long positions can be opened above the level of 0.63324 with the target at around 0.63477-0.63629 and stop-loss at 0.63222.