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NZD/USD review and opinion on December 25, 2019

Dear colleagues!

Despite the fact that today global trading floors are closed due to Christmas, we will analyze some tools that are not so often seen. Perhaps, the NZD/USD currency pair can rightfully be attributed to just such instruments. Before proceeding to the analysis of the charts of the kiwi, a little about the situation that developed at the time of closing of trading before the celebration of Christmas.

But the picture was mixed. In relation to some major currencies, the US dollar has grown, while it has fallen slightly in relation to others. If earlier the so-called "Christmas rally" often happened, then in recent years this phenomenon has practically not been observed. So Tuesday's trading took place at fairly low volumes. The instability of the US currency is still affected by sometimes conflicting reports about an agreement in a trade dispute between the United States and China.

If you look at the economic calendar, then it is actually empty. Based on this, in order not to lose time, let's better look at some charts of NZD/USD and try to determine the future prospects of the New Zealand dollar against the US dollar.

Weekly

analytics5e03f0885a64f.png

This is exactly what was mentioned at the beginning of the review. The pair rarely comes into view. As we see, in vain. The situation here is developing very interestingly and requires a timely response. However, I hope we are not late. In any case, it is necessary to wait until the end of this week, and only after that it will be possible to draw more definite conclusions.

At the moment, the situation is such that the market breaks the bearish signal in the form of a Hanged candle and shows a desire to continue to move up. And let the "Hanging Man" appear below the highest values of the previous white candle, this does not cancel its bearish essence.

So, the pair tends to go up, and the nearest resistance with the continuation of the bullish direction may occur in the area of 0.6656-0.6663. It is here that the lower boundary of the Ichimoku indicator cloud passes, as well as the 89 exponential moving average.

If the current five-day trading ends within the Ichimoku cloud and above 89 EMA, this will only emphasize the seriousness of the bullish sentiment for this currency pair. The lowest objective will be closing the week above the year before last highs shown at 0.6635.

If all current growth is lost and trading on December 23-27 ends under 50 simple moving average, the bullish kiwi scenario may need to be revised. While the week shows the pair's desire to grow. We are waiting for the results of the closure of the current five-day period.

Daily

analytics5e03f0c26c74a.png

On the daily chart we see that the breakout of the brown resistance line 0.6938-0.6790 most likely took place. Four consecutive candles closed above this line.

I believe that the pullback to this line can be considered to open long positions. Moreover, there is Tenkan right on the line, and this is an option for additional and, possibly, very strong support. If we take it at prices, then it's worth planning purchases after pulling down the pair to a strong technical level of 0.6600. This mark was already mentioned in the previous review on the kiwi, and was mentioned as quite strong and important.

Determining the price zone (and not a specific point) to open long positions, I will highlight the area 0.6625-0.6600. After the pair dips into the selected area, we consider options for buying NZD/USD, where candlestick patterns on the daily, four-hour and hourly charts will become an additional signal. If the expected decline does not happen and the quotation continues to grow, we are waiting for the breakout of resistance at 0.6650 and after consolidating above, we buy the pair at the pullback to the broken mark.

At the moment, this is the main trading idea for the NZD/USD pair.

Wish you success!

The material has been provided by InstaForex Company - www.instaforex.com