NZD/USD, H4

On the four-hour chart, the asset is consolidating around 0.6055–0.6246: at the support level of 0.6055, a reversal candlestick analysis pattern Morning Star formed, after which the quotes began to grow, as well as a Hammer pattern, which signals that the area of low prices has reached. At 0.6115, a “bullish” Marubozu figure appeared, emphasizing the strength of buyers, also, by now, the Inverted Hammer pattern has formed, which acts as a driver for further growth of quotations to the resistance level of 0.6246, and then to the area of 0.6487–0.6806. After consolidation below the key support level of 0.6055, the negative dynamics will intensify to 0.5541.

NZD/USD, D1

On the daily chart, at 0.6055, a Hammer candlestick analysis pattern formed, which warns market participants about a price reversal, as well as an Inverted Hammer pattern. After reaching the resistance level of 0.6246, the asset began to correct towards the support level of 0.6055, however, the “bulls” formed a Morning Star reversal pattern, confirming their strength. At the moment, the quotes are moving towards 0.6246, which breakout allows buyers to move higher to the zone of 0.6487–0.6806.

Support and resistance

Resistance levels: 0.6246, 0.6487, 0.6806.

Support levels: 0.6055, 0.5819, 0.5541.

Trading tips

Long positions may be opened above 0.6246 with the targets at 0.6487 and 0.6806. Stop loss – 0.6186. Implementation period: 9–12 days.

Short positions may be opened below 0.6055 with the targets of 0.5819 and 0.5541. Stop loss – 0.6115.