Current trend

This week, the pair demonstrates ambiguous dynamics, trading in a limited price range of 0.6780–0.6835.

Today, the instrument lost 20 points due to the growth of the unemployment rate in New Zealand by 0.1%. In addition, data on personal spending and income of US citizens were controversial and did not affect the market. Personal Spending indicator declined from 0.5% to 0.4%, and Personal Income one remained at the level of 0.4%.

The central event of the day will be a decision on the Fed's interest rate, or rather the Monetary Policy Statement that follows it. It is expected that the rate will remain at the same level of 2.0%, and comments may shed light on further plans of the regulator.

Support and resistance

In the H4 chart there is a correction of the downtrend. The instrument is traded near a strong psychological level of 0.6800, which is the key resistance. The nearest support is the level of 0.6780, the breakdown of which will be a signal for sale. Bollinger Bands are directed horizontally and the price range has reduced slightly, which indicates further correction of the instrument. MACD histogram is correcting in the neutral zone. Stochastic is about to enter the oversold area, a strong buy signal can be generated during the day.

Resistance levels: 0.6806, 0.6840, 0.6860, 0.6885.

Support levels: 0.6782, 0.6739, 0.6713, 0.6684.

Trading tips

Short positions could be opened below 0.6780 with targets at 0.6735, 0.6610 and stop loss at 0.6805.

Long positions may be opened above 0.6805 with target at 0.6860 and stop loss at 0.6785.

Implementation period: 1-2 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.65880.6585723

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.6775
Take Profit0.6735, 0.6610
Stop Loss0.6805
Support levels0.6684, 0.6713, 0.6739, 0.6782, 0.6806, 0.6840, 0.6860, 0.6885

Alternative scenario

RecommendationsBUY STOP
Entry Point0.6810
Take Profit0.6860
Stop Loss0.6785
Support levels0.6684, 0.6713, 0.6739, 0.6782, 0.6806, 0.6840, 0.6860, 0.6885
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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