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FX.co ★ NZD/USD Technical Analysis and Trading Tips for August 02, 2022

NZD/USD Technical Analysis and Trading Tips for August 02, 2022

NZD/USD Technical Analysis and Trading Tips for August 02, 2022

The dollar index (DXY) stopped its fall today, and quotes of commodity currencies fell sharply amid rising tensions in the situation around Taiwan.

As of this writing, NZD/USD was trading near 0.6285, above important near-term support levels at 0.6266 (200 EMA on the 1-hour chart), 0.6260 (200 EMA on the 4-hour chart).

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NZD/USD Technical Analysis and Trading Tips for August 02, 2022

If the upward correction continues and after the breakdown of the local resistance level of 0.6352 (yesterday's high), NZD/USD will head towards the key resistance levels of 0.6505 (144 EMA on the daily chart), 0.6585 (200 EMA on the daily chart). Below these levels, NZD/USD remains in the bear market zone. Only a breakdown of the key resistance level 0.6780 (200 EMA on the weekly chart) will bring the pair back into a long-term bull market zone.

NZD/USD Technical Analysis and Trading Tips for August 02, 2022

The breakdown of the support levels 0.6266, 0.6260 will be the first signal for the resumption of short positions, and the breakdown of the local support level 0.6200 will be a confirming one.

In general, the downward dynamics of NZD/USD prevails, which makes short positions already below the resistance level of 0.6300 (50 EMA and the upper line of the descending channel on the daily chart) preferable.

NZD/USD Technical Analysis and Trading Tips for August 02, 2022

Support levels: 0.6266, 0.6260, 0.6200, 0.6105, 0.6100, 0.6065, 0.6000, 0.5910, 0.5850, 0.5800, 0.5700, 0.5670

Resistance levels: 0.6300, 0.6352, 0.6400, 0.6505, 0.6585, 0.6745, 0.6780

Trading Tips

Sell Stop 0.6255. Stop-Loss 0.6315. Take-Profit 0.6200, 0.6105, 0.6100, 0.6065, 0.6000, 0.5910, 0.5850, 0.5800, 0.5700, 0.5670

Buy Stop 0.6315. Stop-Loss 0.6255. Take-Profit 0.6352, 0.6400, 0.6505, 0.6585, 0.6745, 0.6780

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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