Technical Analytics Report

NZD/USD: Technical Analysis 08 March 2021

NZD/USD: Technical Analysis 08 March 2021

 

Current Trend

 The pair NZD/USD continues to decline for the third consecutive week, approaching the key level for the “bears” at 0.7080 (Murrey [0/8]). After its breakdown, a reversal of the medium-term uptrend and a decline in prices to 0.6958 (Murrey [−2/8]) and 0.6835 (Murrey [4/8], W1) are possible. After the breakout of 0.7263 (Murrey [3/8], the midline of Bollinger Bands), the instrument strengthening can resume to the levels of 0.7385 (Murrey [5/8]) and 0.7446 (Murrey [6/8]).

 Technical indicators show the continued decline: Bollinger Bands are reversing down, MACD histogram is preparing to enter the negative zone and form a sell signal, and Stochastic is in the oversold zone moving horizontally. The downtrend seems more likely in the near future, but before the breakdown of the key level of 0.7080, a temporary price consolidation near it is not excluded.

 Support And Resistance

 Resistance Levels: 0.7263, 0.7385, 0.7446.

Support Levels: 0.7080, 0.6958, 0.6835.

 Trading Tips

 Short positions may be opened if the price consolidates below 0.7080 with targets at 0.6958, 0.6835 and stop-loss at 0.7170. Implementation period: 5-6 days.

 Long positions may be opened above 0.7263 with targets at 0.7385, 0.7446 and stop-loss at 0.7170.

 Scenario

 Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 0.7075

Take Profit: 0.6958, 0.6835

Stop Loss: 0.7170

 Key Levels: 0.6835, 0.6958, 0.7080, 0.7263, 0.7385, 0.7446

 Alternative scenario

 Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 0.7265

Take Profit: 0.7385, 0.7446

Stop Loss: 0.7170

 

Key Levels: 0.6835, 0.6958, 0.7080, 0.7263, 0.7385, 0.7446

 

 

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