NZD/USD: technical analysis 20.08.2019

NZD/USD: technical analysis 20.08.2019

Current trend

NZD/USD is in the stage of upward correction after falling to the level of 0.64026. The main target of the correction is the level of 0.64300, which corresponds to the middle line of Bollinger Bands. The breakout of the level 0.64300 will let the price grow to the level of 0.64392 (Murray [3/8])-0.64547. If NZD/USD cannot consolidate above the level of 0.64392 during short term period, the downward movennt restoration and retest of the levels 0.64087 (Murray [2/8]), 0.64026 are possible. The general downward trend will be restored after the price is set below the level of 0.64026. In this case, the next targets of sellers will be the level of 0.63912-0.63782 (Murray [1/8]). Now the technical indicators reflect the moderate developing of the current upward correction. Bollinger Bands are diverging on the background of bullish momentum. MACD volumes are decreasing in the negative zone, showing the growth of buyers’ moods. Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of the upward movement formation.

Support and resistance

Support levels: 0.64087, 0.63912, 0.63782.
Resistance levels: 0.64300, 0.64392, 0.64547.

Trading recommendations

Long positions can be opened above the level of 0.64300 with the target at around 0.64392-0.64547 and stop-loss 0.64217.
Short positions can be opened below the level of 0.64026 with the target at around 0.63912-0.63782 and stop-loss 0.64107.