NZD/USD, H4
On the four-hour chart Tenkan-sen line is below Kijun-sen, they are both horizontal. Chinkou Span line is below the price chart, current cloud is descending. After long fall the pair has been corrected above Tenkan-sen line, which becomes a support level (0.8566). The closest resistance level is Kijun-sen line (0.8596).
NZD/USD, D1
Let’s look at the daily chart. Tenkan-sen line has crossed Kijun-sen from above, forming Dead Cross reversal pattern. Chinkou Span line is below the price chart; current cloud is ascending. Under the pressure of The Cross the pair has entered the cloud; its borders become support (0.8477) and resistance (0.8610) levels.
Key levels
Support levels: 0.8566, 0.8477.
Resistance levels: 0.8596, 0.8610.
Trading tips
On the four-hour chart we can see a correction of the downward movement. Pending sell orders can be placed below 0.8566, pending buy orders — above 0.8596. On the daily chart the pair is trading within the cloud, it is not recommended to open long-term trades at current price.
Anastasiya Glushkova
Analyst of LiteForex Investments Limited