NZD/USD: technical analysis 18.12.19
On the 4-hour chart, the instrument is falling along the lower line of the Bollinger Bands. The price went down below the support level of 0.65613 and can fall further to the level of 0.65308. This level seems a “key” for the sellers in a short term period. There is a possibility of an upward rebound, while its breakdown would allow the fall to continue and give a prospect of decline to 0.65002 support.
The upward rebound from 0.65613 and sustained trading above the 0.65720 will be a signal for upward correction formation and let the price grow to the area of 0.65918 level, which coincided with the middle line of Bollinger Bands. This mark can prevent the instrument from growing, as the possibility of the reverse of the price is high there. However, the decisive break of 0.65918 is needed to indicate the upward trend resumption. In this case, the next targets of buyers will be the level of 0.65273.
Technical indicators maintain a sell signal.
Bollinger Bands are diverging on the background of bearish momentum.
MACD is growing in the negative zone.
Stochastic’s lines are pointed downwards and are reaching the oversold area.
Support and resistance
Support levels: 0.65531,00.65308, 0.65002.
Resistance levels: 0.65720, 0.65918, 0.66223.
Short positions can be opened below the level of 0.65531 with the target at around 0.65308 and stop-loss at 0.65605.
Long positions can be opened above the level of 0.65918 with the target at around 0.66223 and stop-loss at 0.65818.