Current trend

The pair is weakening under the pressure of Secondary Jobless Claims release, which reflected the fall exceeding expectations: from 223K to 222K. The instrument is also affected negatively by concerns related to the problems of emerging markets. As the New Zealand economy depends on the efficiency of the global economy, the price has declined in response to traders’ decision to move to safer assets.

Today investors are waiting for the meeting of the G7 leaders in Canadian Quebec on Friday. As expected, the focus will be on the US introduction of 25% export duties on metals produced in the EU and Canada.

Support and resistance

On the 4-hour chart, the pair reached the lower border of Bollinger bands, slowing down, and the price range narrowed. MACD histogram is in the positive area, its volumes are smoothly reducing.

Resistance levels: 0.7030, 0.7050, 0.7070, 0.7100.

Support levels: 0.7000, 0.6975, 0.6950, 0.6935, 0.6920, 0.6900, 0.6880.

Trading tips

Short positions can be opened from the level of 0.7000 with the target at 0.6950 and stop loss 0.7030.

Long positions can be opened from the level of 0.7040 with the target at 0.7100 and stop loss 0.7000.

Implementation period: 1–3 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.681670.6814126

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.7000
Take Profit0.6950
Stop Loss0.7030
Support levels0.6880, 0.6900, 0.6920, 0.6935, 0.6950, 0.7000, 0.6975, 0.7030, 0.7050, 0.7070, 0.7100

Alternative scenario

RecommendationsBUY STOP
Entry Point0.7040
Take Profit0.7100
Stop Loss0.7000
Support levels0.6880, 0.6900, 0.6920, 0.6935, 0.6950, 0.7000, 0.6975, 0.7030, 0.7050, 0.7070, 0.7100
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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