NZD/USD: technical analysis and trading recommendations 05/04/2021

The NZD / USD pair was unable to develop upward dynamics above the important resistance level 0.7195 (ЕМА200 on the 1-hour chart), and against the background of the strengthening of the US dollar, today it dropped sharply, breaking through the important support levels 0.7150 (ЕМА200 on the 4-hour chart), 0.7140 (ЕМА50 on the daily chart).

In case of a breakdown into the zone above the levels 0.7140, 0.7150, further growth of NZD / USD, which keeps the long-term positive dynamics above the important support levels 0.6970 (ЕМА200 on the monthly chart), 0.6960 (ЕМА200 on the daily chart), is possible.

In case of further growth, the targets will be the resistance levels 0.7240 (Fibonacci level 38.2% of the retracement in the global wave of the pair's decline from the level of 0.8820), 0.7550 (Fibonacci level 50% and the upper line of the ascending channel on the weekly chart).

In an alternative scenario, NZD / USD will continue to decline with the target at support levels 0.7000, 0.6960.

A breakdown of the support levels 0.6865 (Fibonacci level 23.6%), 0.6815 (ЕМА200 on the weekly chart) will increase the likelihood of a further decline in NZD / USD and its return into the global downtrend that began in July 2014.

Support levels: 0.7100, 0.7040, 0.7000, 0.6960, 0.6935, 0.6865, 0.6815

Resistance levels: 0.7140, 0.7150, 0.7200, 0.7240, 0.7280, 0.7315, 0.7380, 0.7430, 0.7550

 

Trading recommendations

Sell ​​Stop 0.7090. Stop-Loss 0.7160. Take-Profit 0.7040, 0.7000, 0.6960, 0.6935, 0.6865, 0.6815

Buy Stop 0.7160. Stop-Loss 0.7090. Take-Profit 0.7200, 0.7240, 0.7269, 0.7315, 0.7380, 0.7430, 0.7550