Last week the commodity currencies suffered terribly. NZD/USD accelerated downtrend after the RBNZ statement. It broke some decent support levels on the way down, but by the end of the week the downtrend came to an end and we have been retracing higher since. We´re approaching the support levels we broke on the way down, which will likely turn into resistance now.   

Let´s see where these levels stand right now, in order to spot the areas where we might open a buy/sell forex signal.

NZD/USD

Resistance                                                                      Support

1 – 0.6910 (strong – 100 SMA on H4 chart)                     1 – 0.6880 (medium – 100 SMAs on H1 chart)

2 – 0.6950 (strong – the high last week)                           2 – 0.6850 (mild – 50 SMA on H1 chart)

3 – 0.6990-0.70 (mild – 200 SMA on H4 chart)                  3 – 0.6820 (strong – the low last week)

4 – 0.7050 (strong – the high last month)                                    

These are the support and resistance levels for NZD/USD. We just opened a sell forex signal here at 0.6910. We are taking our chances and counting on the 100 and 200 SMAs.

The downtrend was impressive last week. So far, the retrace up has been anaemic. I think that we could get a handful of pips from this forex pair one more time, after two winning forex signals last week.