NZD/USD: TECHNICAL ANALYSIS 24.10.2019
The NZD/USD pair begins today’s trading with slight bearish bias. The price went down blow the level of middle line of Bollinger Bands (0.64087) and can fall further to the area of levels of 0.63944-0.63782. The area of 0.63782 level seem a key level for the selles in short term period, which can activate an upward rebound. Meanwhile, the breakdown of this mark will be a signal for downward trend formation. In this case, the next targets of sellers will be the level of 0.63477.
The pullback and pair’s sustained trading beyond 0.64087 mark will push the price back to 0.64255 (local max at upper line Bollinger Bands). Further close above this level may push NZD/USD even higher towards the level of 0.64348, which seem a strong resistance. Decisive breakout of 0.64348 is needed to indicate the upward trend resumption.
Technical indicators reflect the maintenance of the downward potential. MACD volumes are decreasing in the positive zone. Stochastic is pointed downwards. Bollinger Bands diverge indicating the preservation of the decreasing tendency.
Support and resistance
Support levels: 0.64011, 0.63782, 0.63477.
Resistance levels: 0.64087, 0.64255, 0.64348.
Short positions can be opened below the level of 0.64011 with the target at around 0.63782 and stop-loss at 0.64087.
Long positions can be opened above the level of 0.64087 with the target at around 0.64255-0.64348 and stop-loss at 0.64000.