Current trend

Last week, the NZD/USD pair resumed growth, reversing from the upper border of the long-term downward channel, which acts as a serious support for the price. Currently, the quotes are close to the level of 0.6225 (Murrey level [6/8], 23.6% Fibonacci retracement), the breakdown of which will allow the quotes to return to three-month highs around 0.6347 (Murrey level [8/8], 0.0% Fibonacci retracement) or to the level of 0.6408 (Murrey level [ 1/8]).

Technical indicators confirm the formation of a new uptrend: Bollinger Bands are reversing up, MACD has moved into a positive zone. Stochastic is preparing to leave the overbought zone, not excluding a pullback to the 0.6120–0.6103 zone (the central line of Bollinger Bands, Murrey level [4/8]), but it is unlikely to lead to a change in the emerging uptrend.

Support and resistance

Resistance levels: 0.6225, 0.6347, 0.6408.

Support levels: 0.6103, 0.6042, 0.5981.

Trading tips

Long positions can be opened above 0.6225 or after the price reversal around 0.6103 with targets of 0.6347, 0.6408 and stop-losses around 0.6160 and 0.6050, respectively. Implementation period: 5–7 days.