NZD/USD: Important Level of 0.6860
In April the pair NZD/USD has traded between the levels of 0.7050 (ЕМА200 on the monthly chart) and 0.6790 (ЕМА200 on the daily chart). A middle line is the level of 0.6860 (Fibonacci 23.6% to the global decline in the pair from the level of 0.8800, which started in July 2014 and ЕМА50 on the weekly chart). On the daily chart, the lower line of the ascending channel with the upper limit of 0.7050 is close to the level 0.8800.
If RBNZ will announce the decline in the interest rate today, or indicate possibility of the decline in rate at the meeting in June, the pair may break out the level of 0.6860 and go to the nearest support level of 0.6790 (ЕМА200 on the daily chart).
If the comments of the Bank will be “mild”, the price will go up in the ascending channel to the recent highs and ЕМА200 on the monthly chart at the level of 0.7050 and further p to 0.7240 (Fibonacci 38.2%) in case of the support from the indicators and fundamental news. Meanwhile, these factors are favourable for the sellers.
On 4-hour and daily charts the indicators OsMA and Stochastic give signals for short positions.
If the price goes down below the levels 0.6790, the price may go down with the target of 0.6600 and 0.6400.
Support levels: 0.6860, 0.6835, 0.6790, 0.6700 and 0.6610.
Resistance levels: 0.6910, 0.6980 and 0.7050.
Sell on the market. Stop-Loss: 0.6910. Take-Profit: 0.6835, 0.6790, 0.6700, 0.6650, 0.6610, 0.6410 and 0.6300.
Buy Stop: 0.6920. Stop-Loss: 0.6880. Take-Profit: 0.6980, 0.7000, 0.7050, 0.7100 and 0.7240.