NZD/USD: the downward tendency remains

Current trend

NZD consolidated in a downward trend against USD after a long-term growth in the second half of 2017.

The pair is rapidly declining amid growing investment appeal to the oversold USD. It is worth noting that NZD also loses support from investors the more after each new level of support is taken over. Yesterday, the pair reached a new local minimum for the last month, the mark of 0.7180, after which it moved to the stage of an upward correction.

Today, one should not expect high volatility in the pair due to the lack of important macroeconomic data.

Support and resistance

After a significant fall in the pair in February, one can safely say about a break in the uptrend and the emergence of a downward trend. At the moment, one can determine the borders of the descending channel and open short positions on the peaks of upward corrections. In the medium term, the pair is expected to decline to key support levels of 0.7130, 0.7110.

Technical indicators changed direction on H4 chart: MACD indicates the continuation of the pair’s decline, the volume of short positions remains high, and Bollinger Bands are directed downwards.

Support levels: 0.7200, 0.7180, 0.7130, 0.7110, 0.7070, 0.7000, 0.6930, 0.6800.

Resistance levels: 0.7250, 0.7275, 0.7290, 0.7310, 0.7335, 0.7370, 0.7400.

Trading tips

In this situation, short positions may be opened from the current level; pending orders can be opened from levels of 60.7250, 0.7275 with targets at 0.7130, 0.7110 and the stop-loss at 0.7275.

New Zealand Dollar vs US Dollar

Buy Sell Spread
0.72368 0.72344 24

Scenario

Timeframe Weekly
Recommendations SELL
Entry Point 0.7226
Take Profit 0.7130, 0.7110
Stop Loss 0.7275
Support levels 0.6800, 0.6930, 0.7000, 0.7070, 0.7110, 0.7130, 0.7180, 0.7200, 0.7250, 0.7275, 0.7290, 0.7310, 0.7335, 0.7370, 0.7400

Alternative scenario

Recommendations SELL LIMIT
Entry Point 0.7250, 0.7275
Take Profit 0.7130, 0.7110
Stop Loss 0.7275
Support levels 0.6800, 0.6930, 0.7000, 0.7070, 0.7110, 0.7130, 0.7180, 0.7200, 0.7250, 0.7275, 0.7290, 0.7310, 0.7335, 0.7370, 0.7400

NZD/USD: the downward tendency remains

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