A look at the New Zealand dollar chart

A look at the New Zealand dollar chart

Price action in NZD/USD strongly resembles the so-called "cup and a handle" pattern on the D1 with the neckline in the 0.6450 area. All in all, this pattern implies that the pair may rise as high as to 0.6565 (61.8% Fibo of the July-October decline) and 0.6590 (200-day MA) if it manages to get beyond 0.6460 (100-day MA).

The close of October candlestick on the monthly chart was positive. It's obvious that NZD/USD is trying to find a base. Fundamentally, the pair will rise if the US and China make a breakthrough in trade talks and the USD remains weakened by the domestic figures.

Still, the resistance in the 0.6430/50 has stopped the advance before, so it's probably better to play on the safe side here. Support lies at 0.6385 and 0.6335 (50-day MA).

NZDUSD daily chart

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