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    NZD/USD: downward reversal is possible on 09.03.2016

    Although on the weekly chart the indicators OsMA and Stochastic give buy signals, on 40hour chart the indicators recommend to open sell positions. On the daily chart the indicators are also reversing towards the short positions.

    The price failed to consolidate above the key resistance level of 0.6770 (ЕМА200 on the daily chart).

    If RBNZ reduces interest rate today or announce of such probability in future, the pair NZD/USD can go down. Breakout of support levels of 0.6685 (ЕМА144 on the daily chart), 0.6650 (ЕМА50 on the daily chart and ЕМА200 on 4-hour chart) will bring the pair back to downtrend in the descending channel on the weekly chart with the lower limit at 0.6260 (lows of 2015 and lows of the last global wave of decline from the highs of 2014).

    As an alternative scenario the pair can rise after breakout of the levels of 0.6770, 0.6860 (Fibonacci 23.6%) to 0.7240 (Fibonacci 38.2%), 0.7400 (ЕМА144 on the weekly chart), 0.7550 (ЕМА200 on the weekly chart and Fibonacci 50%).

    However, it can be possible only in case of support from the fundamental news, such as the rise in prices of oil and commodities, rise in the global stock indices and recovery of the global economy and termination of the tightening of monetary policy in the USA and of course if RBNZ will not reduce interest rate in the medium-term amid positive economic data of New Zealand.

    Support levels: 0.6685, 0.6650, 0.6600, 0.6585, 0.6525, 0.6490, 0.6430, 0.6370, 0.6300 and 0.6260.
    Resistance levels: 0.6770 and 0.6860.

    Trading tips

    Sell Stop: 0.6710. Stop-Loss: 0.6750. Take-Profit: 0.6685, 0.6650, 0.6600, 0.6585, 0.6525, 0.6490, 0.6430, 0.6370, 0.6300 and 0.6230.
    Buy Stop: 0.6790. Stop-Loss: 0.6750. Take-Profit: 0.6860, 0.6900 and 0.7240.

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