NZD/USD, H4
Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from above, forming Dead Cross reversal pattern. Chinkou Span is crossing the price chart from above, current cloud is still ascending. Tenkan-sen line is the closest resistance level at 0.8322. The next obstacle for the price on its way down will be the upper border of the cloud at 0.8271.
NZD/USD, D1
On the daily chart Tenkan-sen line is above Kijun-sen and they are both horizontal. Chinkou Span line is crossing the price chart; current cloud has reversed from descending to ascending. The pair weren’t able to consolidate above the cloud and returned within its borders. Senkou Span B line becomes a resistance level (0.8313). The support will be at the level of 0.8274 (Kijun-sen line).
Key levels
Support levels: 0.8271, 0.8274.
Resistance levels: 0.8322, 0.8313.
Trading tips
On the four-hour chart we’ve got signals of trend reversal. Targets for the short positions are at the level of 0.8271. On the daily chart the price has entered the cloud, it is not recommended to open new long-term trades.
Anastasiya Glushkova
Analyst of LiteForex Group of Companies