Current trend

In mid-June, the NZD/USD pair resumed its decline within the long-term downtrend after correction: the price reversed around the level of 0.6225 (Murrey level [6/8]), moved into the negative part of the Murrey trading range and is now close to its lower limit in the area of 0.5859 (Murrey level [0/8]), consolidation below which will allow the quotes to continue moving in the reversal zone to the levels of 0.5798 (Murrey level [˗1/8]) and 0.5737 (Murrey level [˗2/8]). The key for the "bulls" is the 0.6042 mark (Murrey level [3/8]), supported by the central line of Bollinger bands, with a breakout of which upward dynamics will strengthen to the area of 0.6103 (Murrey level [4/8]) and 0.6225 (Murrey level [6/8]), but this scenario is less likely.

Technical indicators confirm the continuation of the downtrend: Bollinger Bands are pointing downwards, MACD is increasing in the negative zone, and Stochastic is horizontal in the oversold zone.

Support and resistance

Resistance levels: 0.6042, 0.6103, 0.6225.

Support levels: 0.5859, 0.5798, 0.5737.

Trading tips

Short positions should be opened below 0.5859 with targets of 0.5798, 0.5737 and stop-loss around 0.5905. Implementation period: 5–7 days.

Long positions can be opened above the 0.6042 mark with targets of 0.6103, 0.6225 and stop-loss around 0.6000.