Current trend

On Friday, NZD broke the upper border of the medium-term downward trend and went higher against USD. Today, the momentum has been preserved, and the pair continues to increase due to the poor US employment market data: the Unemployment Rate grew by 0.2%, Initial Jobless Claims indicator both projected values ​​and previous ones. For two trading days, the instrument gained more than 80 points and consolidated near the level of 0.6850.

At the beginning of the week, there is a lack of key releases in the US and New Zealand. Next, the traders will focus on Consumer Price Index and employment market data.

Support and resistance

The upward momentum will maintain due to a decrease in demand for USD. The pair passed the psychological level of local lows 0.6820, 0.6790 and was consolidated higher, which technically can be considered as a turn. However, it is possible that the instrument is in a long correction, which will end with a new downward wave.

An alternative scenario is the pair's growth to a strong resistance level of 0.6920 and a decrease from this mark to a local minimum. On the daily chart, technical indicators keep the decrease signal, MACD’s short positions’ volumes are high, Bollinger bands are directed downwards.

Resistance levels: 0.6880, 0.6895, 0.9320, 0.6950, 0.6970, 0.7030.

Support levels: 0.6820, 0.6790, 0.6770, 0.6750, 0.6720, 0.6685, 0.6600.

Trading tips

It is relevant to increase the volumes of short positions from the current level and open pending short positions from the levels of 0.6880, 0.6920 with the target at 0.6685 and stop loss 0.6990.

New Zealand Dollar vs US Dollar

BuySellSpread
0.67760.6773921

Scenario

TimeframeWeekly
RecommendationsSELL
Entry Point0.6853
Take Profit0.6685
Stop Loss0.6909
Support levels0.6600, 0.6685, 0.6720, 0.6750, 0.6770, 0.6790, 0.6820, 0.6880, 0.6895, 0.9320, 0.6950, 0.6970, 0.7030

Alternative scenario

RecommendationsSELL LIMIT
Entry Point0.6880, 0.6920
Take Profit0.6685
Stop Loss0.6990
Support levels0.6600, 0.6685, 0.6720, 0.6750, 0.6770, 0.6790, 0.6820, 0.6880, 0.6895, 0.9320, 0.6950, 0.6970, 0.7030
NZD/USD: correction continues

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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