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NZD/USD: technical analysis 16.10.2019

Current trend

On 4-hour chart, the instrument shows a negative dynamic. The instrument is now testing the level of 0.62714. Breakdown and sustained trading below this level will let the price fall to the area of 0.62561. The area of 0.62561 level seem a key level for the sellers. There is a high chance of an upward rebound, while its breakout would be a start for new downtrend.
In this case, the next targets of sellers will be the level of 0.624080-0.62256. Alternative scenario. If NZD/USD cannot consolidate below the level of 0.62561 during short term period, the upward movement restoration and retest of 0.621714 resistance level are possible. The upward trend will be restored after the price is set above the level of 0.62866. In this case the buyers will aim for the 0.63019-0.63184 resistance area.
The area of 0.63184 seem a key bullish level, that can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, the breakout and consolidation above it will give the prospect of growth to the levels of 0.63324-0.63477.
On 4-hour chart, technical indicators mostly keep a sell signal. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic’s lines are pointed downwards and are reaching the oversold area.

Support and resistance

Support levels: 0.62690, 0.62561, 0.62408, 0.62256.
Resistance levels: 0.62748, 0.62866, 0.63019, 0.63171.

Trading recommendations

Short positions can be opened below the level of 0.62690 with the target at around 0.62561-0.62408 and stop-loss at 0.62784.
Long positions can be opened above the level of 0.62866 with the target at around 0.63019-0.63171 and stop-loss at 0.62764.

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