Current trend

The NZD/USD pair is moving within a long-term downward channel, however, recently the quotes have been attempting to begin a corrective growth: in the middle of last month, the price entered the sideways range of 0.5981–0.5859 (Murrey level [2/8]–[0/8]) and can’t leave it yet. Currently, the price is close to the upper limit, supported by the upper line of Bollinger Bands, consolidation above will allow the asset to reach the area of 0.6103 (Murrey level [4/8]) and 0.6164 (Murrey level [5/8]). The key “bearish” level is 0.5859, if it breaks down, the decline will continue along the lower border of the downward channel to the area of 0.5798 (Murrey level [–1/8]) and 0.5737 (Murrey level [–2/8]).

Technical indicators do not give a single signal: Bollinger bands are horizontal, the MACD histogram is at the zero line, its volumes are insignificant, and Stochastic reversed upwards from the oversold zone.

Support and resistance

Resistance levels: 0.5981, 0.6103, 0.6164.

Support levels: 0.5859, 0.5798, 0.5737.

Trading tips

Short positions may be opened below 0.5859 with the targets at 0.5798, 0.5737 and stop loss around 0.5900. Implementation time: 5–7 days.

Long positions may be opened above 0.5981 with the targets at 0.6103, 0.6164 and stop loss around 0.5940.