NZD/USD: technical analysis
At the beginning of yesterday’s trading session the pair went up, reaching resistance level of 0.8400. However the pair failed to overcome this level and fell to 0.8300. On the four-hour chart pattern “triangle” has been formed. Breakout of this pattern will determine further movement direction of the price.
MACD indicator shows the decline: the signal line is outside histogram and is directed downward. Stochastic is in the oversold zone; both of its lines indicate sideways movement.
Support and resistance
The nearest resistance level is 0.8335, next obstacle for the upward movement in price will be: 0.8360 (23.6% Fibonacci retracement), 0.8390 and 0.8430. Support levels: 0.8300, 0.8250 and 0.8200.
The most feasible scenario is the decline in the pair. It is recommended to open short positions below the level of 0.8300 with the profit taking at the level of 0.8200.
Analyst of LiteForex Group of Companies