NZD/USD: quotations of commodity currencies fell sharply

Today, quotations of commodity currencies fell sharply against the backdrop of growing tensions in the situation around Taiwan. At the time of writing this article, NZD/USD was traded near 0.6296, above important near-term support levels 0.6266 (EMA200 on the 1-hour chart), 0.6260 (EMA200 on the 4-hour chart).

If the upward correction continues and after the breakdown of the local resistance level 0.6352 (yesterday's high), NZD/USD will head towards the key resistance levels 0.6505 (EMA144 on the daily chart), 0.6585 (EMA200 on the daily chart).

Below these levels, NZD/USD remains in the bear market zone. Only a breakdown of the key resistance level 0.6780 (EMA200 on the weekly chart) will bring the pair back into the zone of a long-term bull market.

In an alternative scenario, a breakdown of the support levels 0.6266, 0.6260 will be the first signal for the resumption of short positions, and a breakdown of the local support level 0.6200 - a confirming one.

Support levels: 0.6266, 0.6260, 0.6200, 0.6105, 0.6100, 0.6065, 0.6000, 0.5910, 0.5850, 0.5800, 0.5700, 0.5670

Resistance levels: 0.6300, 0.6352, 0.6400, 0.6505, 0.6585, 0.6745, 0.6780

Trading recommendations

Sell Stop 0.6255. Stop Loss 0.6315. Take-Profit 0.6200, 0.6105, 0.6100, 0.6065, 0.6000, 0.5910, 0.5850, 0.5800, 0.5700, 0.5670

Buy Stop 0.6315. Stop Loss 0.6255. Take-Profit 0.6352, 0.6400, 0.6505, 0.6585, 0.6745, 0.6780