NZD/USD, H4

At the four-hour time frame at the resistance level of 0.6394, a Long-Legged Doji candlestick analysis pattern, which is also called a Pin Bar, is being formed, signaling a downward price reversal and warning market participants about the leading positions of the "bears". In addition, at the level of 0.6334, a Hanging Man reversal pattern and a Tweezer Top pattern formed, after which the instrument continued to decline, and is currently trading around 0.6259. It is likely that the quotes of the NZD/USD pair will intensify the downward movement to the key support level of 0.6153, the overcoming of which will become a catalyst to reach the levels of 0.5919–0.5684. An alternative scenario is possible if the price fixes above the resistance level of 0.6394, then the quotes may recover to the area of 0.6562–0.6802.

NZD/USD, D1

On the daily chart at the level of 0.6394, a Shooting Star reversal candlestick pattern appeared, which is formed in the area of high prices and warns of increasing sales volumes in the asset. Quotes of the NZD/USD pair are likely to form the Three Black Crows pattern at the level of 0.6334, which is a model for the continuation of the downward movement with the target of 0.6153, reaching which the "bears" will be able to send the price lower, to the level of 0.5684.

Support and resistance

Support levels: 0.6153, 0.5919, 0.5684.

Resistance levels: 0.6394, 0.6562, 0.6802.

Trading tips

Short positions can be opened below 0.6153 with targets at 0.5919, 0.5684. Stop-loss — 0.6213. Implementation time: 9-12 days.

Long positions can be opened above 0.6394 with targets at 0.6562, 0.6802. Stop-loss — 0.6334.