Current trend

NZD continues to fall and is trading near the lowest level since the end of 2017. USD is strengthening against the backdrop of a growing trade war between the US and the PRC.

The decline of NZD was restrained due to the growth of trading activity, which caused an insignificant trade surplus in Q1 2018. At the same time, retail sales statistics in New Zealand showed a significant slowdown, which is likely to have a negative impact on GDP, which in turn will force the New Zealand regulator to take an even more cautious stance on monetary policy. Thus, the instrument can incur additional losses in the short and medium term.

The speech by the Fed Head Jerome Powell is due today at 15:30 (GMT+2). Tomorrow at 00:45 (GMT+2), the Statistics New Zealand will release data on GDP in quarterly and annual terms. The projected slowdown in GDP growth will put strong pressure on the pair.

Support and resistance

On D1 chart, the instrument is traded near the psychological level of 0.6880. Bollinger Bands are directed downwards, and the price range remains unchanged indicating further decline of the pair. MACD histogram is in the negative zone keeping a sell signal. Stochastic is about to enter the oversold area, there is no signal for entering the market.

Support levels: 0.6877, 0.6847, 0.6806, 0.6776.

Resistance levels: 0.6838, 0.6902, 0.6921, 0.6963, 0.6995, 0.7025, 0.7053, 0.7097, 0.7127.

Trading tips

Short positions could be opened from the level of 0.6865 with targets at 0.6810, 0.6780 and stop-loss at 0.6915. Implementation period: 1-2 days.

Long positions may be opened from the level of 0.6975 with target at 0.7055 and stop-loss at 0.6945. Implementation period: 1-3 days.

New Zealand Dollar vs US Dollar



TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.6860
Take Profit0.6810, 0.6780
Stop Loss0.6915
Support levels0.6776, 0.6806, 0.6847, 0.6877, 0.6838, 0.6902, 0.6921, 0.6963, 0.6995, 0.7025, 0.7053, 0.7097, 0.7127

Alternative scenario

RecommendationsBUY STOP
Entry Point0.6975
Take Profit0.7055
Stop Loss0.6945
Support levels0.6776, 0.6806, 0.6847, 0.6877, 0.6838, 0.6902, 0.6921, 0.6963, 0.6995, 0.7025, 0.7053, 0.7097, 0.7127
NZD/USD: general review

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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