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NZD/USD: TECHNICAL ANALYSIS 21.10.2019

Forex market technical analysis by Atirox for NZD/USD

Current trend

On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands. The lack of long-term corrections reflects the strength of the current trend. If the current trend maintains, the next targets of buyers will be the level of 0.64087. The level of 0.64087 seem a strong level which might be intermediate hurdle on the background to sustained upward dynamic. Meanwhile, the decisive break of 0.64087 level will fuel the upward trajectory and give a prospect of growth to the level of 0.64231.

Alternative scenario.
If NZD/USD cannot consolidate above the level of 0.64087, the downward movement initialization and retest of the level 0.63782 are possible. The downward trend will be restored after the price is set below the level of 0.63693. In this case, the next targets of sellers will be the level of 0.63477.
Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. Bollinger Bands are pointed upwards. MACD is slowly growing in the positive zone. Stochastic is ready to left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 0.63919, 0.63782, 0.63477.
Resistance levels: 0.64087, 0.64231, 0.64428.

Trading recommendations

Short positions can be opened below the level of 0.63782 with the target at around 0.63477 and stop-loss at 0.63883.
Long positions can be opened above the level of 0.64087 with the target at around 0.64231-0.64428 and stop-loss at 0.63973.

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