The USDNZD has been trading in a bearish price channel as visible in this H4 chart. This pair has now touched its descending support line and should be able to launch a rally which should take it back to its 200 DMA as well as its descending resistance level of its current chart pattern.
MACD indicates bearishness and confirms the bearish price channel. We expect momentum to stabilize and improve slightly during the rally. RSI has reached extreme oversold territory and points to a change in direction. A breakout from current levels should accelerate the move higher.
We recommend a long position at 0.8290 with a potential second entry level at 0.8090. Should this pair break the 0.8240 level to the downside we advise traders to hedge their initial position at that level before adding new long positions to their trade.
Traders who wish to exit their trade at a loss are advised to place their stop loss level at 0.8200. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 0.8350.