After yesterday's growth, the strengthening of the US dollar resumed from the opening of the trading day today. The US dollar is strengthening, including against the main commodity currencies. In particular, the NZD/USD pair, as of this writing, is trading in the zone between important short-term levels, support 0.6315 (50 EMA on the daily chart), 0.6300 (200 EMA on the 4-hour chart) and resistance 0.6354 (200 EMA on the 1-hour chart).

As we assumed, a breakdown in one direction or another will determine the further direction of the pair's dynamics. In general, the downward dynamics of NZD/USD prevails, while the pair remains in the zone of a long-term bearish market, below the key resistance levels 0.6770 (200 EMA on the weekly chart), 0.6560 (200 EMA on the daily chart).

Taking into account the general upward trend of USD and the downward dynamics of NZD/USD, it is more logical to assume a breakdown of the support levels of 0.6315, 0.6300 and further decline deep into the downward channel on the weekly chart. Its lower border passes near the marks of 0.6000, 0.5900, which will become a reference point in case our main scenario comes true.

In an alternative scenario, the breakdown of the resistance levels 0.6354, 0.6380 will become a signal for the resumption of the upward correction and long positions with the target at the resistance level 0.6480 (144 EMA on the daily chart)

However, only a breakdown of the key resistance level 0.6770 will bring the pair back into a long-term bull market zone. In general, the downward dynamics of NZD/USD prevails, which makes short positions preferable.

Support levels: 0.6315, 0.6300, 0.6200, 0.6105, 0.6100, 0.6000, 0.5900

Resistance levels: 0.6354, 0.6380, 0.6400, 0.6480, 0.6500, 0.6560, 0.6745, 0.6770

Trading Tips

Sell Stop 0.6290. Stop-Loss 0.6375. Take-Profit 0.6315, 0.6300, 0.6200, 0.6105, 0.6100, 0.6000, 0.5900

Buy Stop 0.6375. Stop-Loss 0.6310. Take-Profit 0.6400, 0.6480, 0.6500, 0.6560, 0.6745, 0.6770