Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

NZD/USD: sell target - 0.6750

By: Dmitriy Chernovolov

  • NZD/USD reversed from pivotal resistance level 0.6860
  • Next sell target - 0.6750

NZD/USD continues to decline – following the earlier downward reversal from the pivotal resistance level 0.6860 (which reversed the previous sharp corrective waves A, b and (b), as can be seen from the daily NZD/USD chart below). The resistance zone near the resistance level 0.6860 is strengthened by the upper daily Bollinger Band. The downward reversal from 0.6860 stopped the active minor impulse wave (iii), which belongs to the C-wave from January.

Given the strength of the resistance level 0.6860 and the clear bearish divergence visible on the daily RSI indicator - NZD/USD can be expected to fall further to the next sell target at the support level 0.6750 (38.2% Fibonacci correction of the upward impulse from the end of wave (ii)).

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