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NZD/USD: technical analysis 20.01.20

Current trend

On a 4-hour chart, NZD/USD bounced off the 0.66071 horizontal-support but is yet to cross the 0.66214 resistance, which coincided with the middle line of Bollinger Bands. This level seems a strong resistance hinders the growth of quotes. However, the breakout of this level and pair’s sustained trading above it will give a prospect of growth to the 0.66376-0.66528 resistance area.

Alternative scenario

The downward rebound from 0.66223 will let the price retest the 0.66071 support. One may speak about downward movement continuation after the price consolidates below this level. In this case, the next targets of sellers will be the level of 0.65918-0.65829. Should prices continue slipping under 0.65800, the 0.65765 level might try activating an upward rebound.

Technical indicators

The technical picture is mixed.

Bollinger Bands are pointed sideways.

MACD is growing in the negative zone. forming a weak sell signal.

Stochastic is ready to leave the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 0.66071, 0.65918, 0.66765, 0.65613.
Resistance levels: 0.66223, 0.66376, 0.66528, 0.66681.

Trading recommendations

Short positions can be opened below the level of 0.66071 with the target at around 0.65918-0.65765 and stop-loss at 0.66173.
Long positions can be opened above the level of 0.66223 with the target at around 0.66376-0.66528 and stop-loss at 0.66121.

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