Current trend

This week, the NZD/USD pair has been declining within the correction framework after a month-long rise. Today, quotes reached three-month lows in the area of 0.6020: the price broke below 0.6042 (Murrey level [3/8]), which could lead to an intensified decline in the area of 0.5981 (Murrey level [2/8]), 0.5920 (Murrey level [1/ 8]) and 0.5859 (Murrey level [0/8]). The key level for the "bulls" remains 0.6103 (Murrey level [4/8]), supported by the center line of Bollinger Bands, consolidation above which will become a catalyst for achieving targets 0.6164 (Murrey level [5/8]) and 0.6225 (Murrey level [6/8], Fibonacci retracement 23.6%).

The market is witnessing the formation of a new short-term downward trend, which is confirmed by technical indicators: Bollinger Bands and Stochastic are directed downwards, and MACD is increasing in the negative zone.

Support and resistance

Resistance levels: 0.6103, 0.6164, 0.6225.

Support levels: 0.6042, 0.5981, 0.5920, 0.5859.

Trading tips

Short positions may be opened at the current price with targets at 0.5981, 0.5920, 0.5859 and stop-loss at 0.6070. Implementation period: 5-7 days.

Long positions may be opened above 0.6103 with targets at 0.6164, 0.6225 and stop-loss at 0.6055.