NZD/USD, H4

On the four-hour chart, a Bearish Flag pattern is being built, the exit from which should be down, as well as a Bearish Engulfing candlestick pattern under the resistance level of 0.6216, which warns trading participants about a reversal, while a Bearish Marubozu volume candle has appeared in the area of 0.6156, emphasizing pressure from sellers. In the current situation, the most likely scenario is the implementation of the Bearish Flag pattern with the price breaking through the key support level of 0.6079, consolidation below which will allow the "bears" to reach the area of 0.5998–0.5875. An alternative scenario is likely if the "bulls" are able to restore the price above the resistance level of 0.6216, which will become a catalyst for opening long positions with targets in the range of 0.6282–0.6370.

NZD/USD, D1

On the daily chart, below the level of 0.6216, quotes are correcting as part of a long-term upward trend, forming a reversal Evening Star candlestick pattern. In addition, the candlestick pattern included a Bearish Marubozu figure, confirming stable pressure on the price from sellers. Overcoming the trend line and consolidating below the level of 0.6079 will give the "bears" the opportunity to send quotes of the trading instrument to the area of 0.5998–0.5875.

Support and resistance

Support levels: 0.6079, 0.5998, 0.5935, 0.5875.

Resistance levels: 0.6216, 0.6282, 0.6370.

Trading tips

Short positions can be opened below the level of 0.6079 with targets of 0.5998, 0.5935, 0.5875. Stop-loss — 0.6139. Implementation time: 9-12 days.

Long positions can be opened above 0.6216 with targets at 0.6282, 0.6370. Stop-loss — 0.6156.