Current trend

This week, NZD/USD is trading within a limited price range due to the lack of significant releases.

USD is vulnerable due to the complicated EU-US trade negotiations. On June 1, 25% tax on steel and aluminum, supplied to the US from EU, will be implied. This week, US Secretary of Commerce Wilbur Ross and EU Trade Commissioner Cecilia Malmstrom will meet in Paris to discuss the situation. EU representatives do not agree with new fees and reject to replace them with 90% quota for the import of metals in the US at the level of last year's supply volumes. EU can imply reciprocal taxes on American goods amounting to 2.8 billion EUR, and USD will be under serious pressure.

Today the pair will trade within the range of 0.6900–0.6950 due to the lack of key macroeconomic data. RBNZ Governor Orr Speech is due at 03:10 (GMT+2) tomorrow. At 14:30 (GMT+2), US employment data, GDP and Core Personal Consumption Expenditures releases will be published.

Support and resistance

On the daily chart, the instrument consolidated above the psychological level of 0.6900. Bollinger bands are directed down, and the price range remains unchanged, indicating a further fall. MACD is in the negative zone, keeping a strong sell signal. Stochastic was corrected within the neutral area; the entry signal is not formed.

Resistance levels: 0.6956, 0.7005, 0.7057, 0.7094, 0.7130, 0.7181.

Support levels: 0.6768, 0.6822, 0.6849, 0.6908.

Trading tips

Short positions can be opened below the level of 0.6895 with the targets at 0.6820, 0.6800 and stop loss 0.6965. Implementation period: 1–2 days.

Long positions can be opened from the level of 0.6965 with the target at 0.7040 and the stop loss 0.6890. Implementation period: 1–3 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.680050.679825

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.6890
Take Profit0.6820, 0.6800
Stop Loss0.6965
Support levels0.6768, 0.6822, 0.6849, 0.6908, 0.6956, 0.7005, 0.7057, 0.7094, 0.7130, 0.7181

Alternative scenario

RecommendationsBUY STOP
Entry Point0.6965
Take Profit0.7040
Stop Loss0.6890
Support levels0.6768, 0.6822, 0.6849, 0.6908, 0.6956, 0.7005, 0.7057, 0.7094, 0.7130, 0.7181
NZD/USD: general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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