Confirming the forecast, the New Zealand dollar against the US one rebounded from the upper border of the broad downward trend and went down.
In the first half of the current trading week, the pair declined by more than 70 points, and the momentum only intensifies. The main catalyst for the change in the short-term trend was the strengthening of the position of USD in view of favorable releases on retail sales, the construction sector, and industrial production. Additional impetus to the US dollar was given by the comments of the Fed's representatives on the preservation and tightening of monetary policy.
At the end of the week, it is worth paying attention only to data on the labor market of the United States.
Support and resistance
In the second half of the trading week, high volatility is not expected due to the lack of key releases for the US and New Zealand. In the future, it is expected that the downward trend will continue with the target levels at the lower border of the channel at 0.7200, 0.7180, 0.7150, and 0.7130. In the long term, it is also worth betting on the growth of the US dollar against New Zealand one with targets at 0.6820, 0.6750, 0.6680.
Technical indicators on H4 chart confirm the forecast for decline: MACD indicates the growth of volumes of short positions, and Bollinger Bands are reversing downwards.
Support levels: 0.7295, 0.7250, 0.7200, 0.7180, 0.7150, 0.7130, 0.7110, 0.6820, 0.6750.
Resistance levels: 0.7335, 0.7370, 0.7400, 0.7420, 0.7435, 0.7450.
In this situation, short positions may be opened from the current level with targets at 0.7200, 0.7150 and stop-loss at 0.7390.
New Zealand Dollar vs US Dollar
|Take Profit||0.7200, 0.7150|
|Support levels||0.6750, 0.6820, 0.7110, 0.7130, 0.7150, 0.7180, 0.7200, 0.7250, 0.7295, 0.7335, 0.7370, 0.7400, 0.7420, 0.7435, 0.7450|
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