Current trend

This week, the pair demonstrates a moderate decline at the background of strong macroeconomic releases in the US.

The main losses occurred on Wednesday, after the release of the Producer Price Index in the US. YoY, the index exceeded the positive forecast by 0.2%. Thus, the positive inflationary dynamics corresponds to the "hawkish" plans of the Fed on monetary policy.

Yesterday, the pair won back a small part of Wednesday's losses due to the information about the desire of China and the US to negotiate to resolve controversial trade issues.

The key event of Friday is the publication of the Fed monetary policy report at 17:00 (GMT+2).

Support and resistance

In the H4 chart, the instrument could not break out the resistance level of 0.6790 and started to decrease. Bollinger Bands are directed downwards, and the price range has expanded, indicating the further downtrend. MACD histogram is in the negative zone keeping the sale signal. Stochastic does not give clear signal for entering the market.

Support levels: 0.6745, 0.6736, 0.6708, 0.6686.

Resistance levels: 0.6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963.

Trading tips

Short positions may be opened from the current level with targets at 0.6700, 0.6685 and stop-loss at 0.6780.

Long positions may be opened above the level of 0.6780 with target at 0.6845 and stop-loss at 0.6760.

Implementation period: 1-2 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.677630.6773825

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point0.6742
Take Profit0.6700, 0.6685
Stop Loss0.6780
Support levels0.6686, 0.6708, 0.6736, 0.6745, 6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963

Alternative scenario

RecommendationsBUY STOP
Entry Point0.6785
Take Profit0.6845
Stop Loss0.6760
Support levels0.6686, 0.6708, 0.6736, 0.6745, 6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963
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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