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NZD/USD: technical analysis 27.12.19

Current trend

On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands and approaching the resistance 0.66833. Judging by the downward reversal Stochastic in the overbought zone, a downward correction is possible soon. However, the breakout of 0.66833 and pair’s sustained trading above it will be a signal for bullish traders and give a prospect of growth to the 0.67139.

Alternative scenario

The rebound from 0.66833 and pullback below 0.66681 will be a sign of downward correction formation and lead the price back to 0.66528. level. This mark will be an important line of support to watch in the short-term. There is a chance of an upward rebound, while its breakdown would push NZD/USD even lower towards the level of 0.66370, which coincided with the middle line of Bollinger Bands.

Technical indicators

Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.

Bollinger Bands are pointed upwards.

MACD is growing in a positive zone.

Stochastic’s lines are in the overbought zone and are pointed downwards, signaling the development of a downward correction.

Support and resistance

Support levels: 0.66731, 0.66528, 0.66370, 0.66233.
Resistance levels: 0.66833, 0.67139, 0.67444.

Trading recommendations

Short positions can be opened below the level of 0.66681 with the target at around 0.66528-0.66370 and stop-loss at 0.66784.
Long positions can be opened above the level of 0.66833 with the target at around 0.67139 and stop-loss at 0.66731.

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