NZD/USD: Pressure on the Pair is Increasing
Following minor rise in the pair NZD/USD at the beginning of the Asian session caused by the report of the dairy company Fontera, the NZD continued to decline against the USD.
Support level is at 0.6695 (ЕМА144 on the daily chart and ЕМА200, ЕМА144 on 4-hour chart). On the daily and 4-hour chart the indicators OsMA and Stochastic give sell signals. Consolidation of the price below the level of 0.6695 can trigger further decline in the pair NZD/USD in the downward channel on the weekly chart with the lower limit at the level of 0.6200.
If the price goes back above the level of 0.6770, the pair can go to the levels of 0.6860 (Fibonacci 23.6%), 0.7240 (Fibonacci 38.2%) and 0.7350 (ЕМА144 on the weekly chart).
After that the pair is likely to decline due to different monetary policies of the Central banks of the USA and New Zealand and possibility of slowdown in the global economy as a whole and especially the economy of China.
Support levels: 0.6695, 0.6650, 0.6610, 0.6585, 0.6525, 0.6490, 0.6410, 0.6370 and 0.6260.
Resistance levels: 0.6770, 0.6860 and 0.6900.
Sell on the market. Stop-Loss: 0.6790. Take-Profit: 0.6650, 0.6610, 0.6585, 0.6525, 0.6490, 0.6410, 0.6370 an 0.6260.
Buy Stop: 0.6810. Stop-Loss: 0.6760. Take-Profit: 0.6860, 0.6900, 0.7000, 0.7100 and 0.7240.
The material has been provided by LiteForex - Finance Services Company - www.liteforex.com