NZD/USD: technical analysis and trading recommendations_11/19/2021

 
 
 
 
 
 
 

As we noted above, NZD / USD remains in the bull market zone, trading above the key support level 0.6865 (ЕМА200 on the weekly chart and 23.6% Fibonacci retracement in the global wave of the pair's decline from 0.8820). The pair's quotes are fluctuating today in the range of important long-term levels 0.7048 (EMA144 on the daily chart), 0.7030 (EMA200 on the daily chart), 0.7000 (EMA50 on the weekly chart).

In the current situation, the chances of USD and NZD for strengthening / weakening relative to each other look about the same. The determining factor in their dynamics and the NZD / USD pair is likely to be the monetary policy of the US and New Zealand central banks. And, most likely, the conditional «scales» will tilt towards the currency of the country, whose central bank will take a tougher position.

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From a technical point of view, a breakdown of the local support level 0.6980 (this month's lows) may trigger a further decline in NZD / USD with targets near the support levels 0.6930, 0.6865, 0.6810.

In the alternative scenario and after the breakdown of the resistance levels 0.7048, 0.7068 (ЕМА200 on the 4-hour chart), NZD / USD will head towards the resistance levels 0.7100, 0.7170. More distant growth targets are located at resistance levels 0.7240 (Fibonacci level 38.2%), 0.7430, 0.7550 (Fibonacci level 50%), 0.7600.

Support levels: 0.7000, 0.6930, 0.6865, 0.6810, 0.6750, 0.6700

Resistance levels: 0.7030, 0.7048, 0.7068, 0.7100, 0.7170, 0.7240, 0.7315, 0.7380, 0.7430, 0.7550, 0.7600

Trading recommendations

Sell Stop 0.6970. Stop-Loss 0.7055. Take-Profit 0.6930, 0.6865, 0.6810, 0.6750, 0.6700

Buy Stop 0.7055. Stop-Loss 0.6970. Take-Profit 0.7068, 0.7100, 0.7170, 0.7240, 0.7315, 0.7380, 0.7430, 0.7550, 0.7600