NZD/USD: technical analysis and trading recommendations_02/22/2021
For the last 8 weeks, NZD / USD has been traded in a range between 0.7315 resistance level and 0.7100 support level. During today's Asian session, the pair attempted to break through the 0.7315 resistance level and climbed to 0.7338, the 35-month high.
At the time of publication of this article, the pair fell again to the level of 0.7315, generally maintaining positive dynamics amid a weak US dollar and positive investor sentiment regarding the further recovery of the global economy after the coronavirus pandemic.
Remaining to trade above the key support levels 0.6970 (ЕМА200 on the monthly chart), 0.6840 (ЕМА200 on the daily chart), 0.6780 (ЕМА200 on the weekly chart) and in the ascending channels on the daily and weekly charts, NZD / USD maintains long-term positive dynamics.
Above the important support levels 0.7188 (ЕМА200 on the 4-hour chart), 0.7240 (38.2% Fibonacci level of the correction in the global wave of the pair's decline from 0.8820), nothing threatens long positions in NZD / USD.
Probably, in case of a confirmed breakdown of the resistance level 0.7315, the growth of NZD / USD will continue towards the resistance levels 0.7380, 0.7430, 0.7550 (50% Fibonacci level and the upper border of the ascending channel on the weekly chart).
In an alternative scenario, NZD / USD will resume its decline to the support levels 0.6865 (Fibonacci 23.6%), 0.6840 (ЕМА200 on the daily chart), 0.6780. A signal for the implementation of this scenario will be a breakdown of the support level 0.7100, and a breakdown of the support level 0.6780 will significantly increase the likelihood of a further decline in NZD / USD and its return to the global downtrend that began in July 2014.
Support levels: 0.7240, 0.7231, 0.7188, 0.7155, 0.7100, 0.6970, 0.6930, 0.6865, 0.6840, 0.6780
Resistance levels: 0.7315, 0.7380, 0.7430, 0.7550
Sell Stop 0.7270. Stop-Loss 0.7345. Take-Profit 0.7240, 0.7231, 0.7188, 0.7155, 0.7100, 0.6970, 0.6930, 0.6865, 0.6840, 0.6780
Buy Stop 0.7345. Stop-Loss 0.7270. Take-Profit 0.7380, 0.7430, 0.7550