Thursday, March 3, 2016

NZD/USD: technical analysis

NZD/USD: technical analysis
NZD/USD, D1

On the daily chart, the pair is trading in the upper Bollinger band and just above the 61.8% Fibonacci fan line. The price remains on the level with its moving averages that are horizontal. The RSI is falling along its trendline. The Composite is about to retest its most recent resistance.

NZD/USD, H4

On the 4-hour chart, the pair is correcting down as it formed three successful closes above the upper MA of Bollinger Bands. The price remains above tis moving averages that start turning up. The RSI is turning down towards its MA’s. The Composite is turning down as well. MA’s for both indicators suggest a strength of the market.


Key levels
Support levels: 0.6602 (February lows), 0.6562 (local lows), 0.6466 (January lows).
Resistance levels: 0.6724 (February highs), 0.6773 (local highs), 0.6881 (December highs).

Trading tips
Long positions can be opened from the level of 0.6781 with the target at 0.6865 and stop-loss at 0.6740. Validity – 2-3 days.
Short positions can be opened after the price rebound from the level of 0.6724 with the target at 0.6612 and stop-loss at 0.6774. Validity – 2-3 days.

Scenario

TimeframeIntraday
RecommendationBUY STOP
Entry Point0.6781
Take Profit0.6865
Stop Loss0.6740
Key Levels0.6466, 0.6562, 0.6602, 0.6724, 0.6773, 0.6881

Alternative scenario

RecommendationSELL LIMIT
Entry Point0.6700
Take Profit0.6612
Stop Loss0.6774
Key Levels0.6466, 0.6562, 0.6602, 0.6724, 0.6773, 0.6881