Current trend

NZD declines against USD after the growth of demand for American dollar and poor New Zealand macroeconomic statistics. Last week, the pair consolidated within a sideways narrow channel near a strong support level and a local minimum. Today, after the commentaries about the high probability of RBNZ interest rate decrease in the short term, the pair broke down the local minimum and fell to the next key support level of 0.6650.

Today and tomorrow, special attention should be paid to data on the labor market, inflation and major US indices.

Support and resistance

In the short term, the downward momentum is expected to develop to the level of 0.6610 (the lower border of the downward channel) due to sales of NZD and growth in demand for USD against a fundamental background. Then, correction to its upper border at 0.6690 is possible; however, short positions within the trend will remain relevant in the medium term.

Technical indicators confirm the fall forecast, the volumes of short positions of MACD have sharply increased, and Bollinger bands are directed downwards.

Resistance levels: 0.6690, 0.6710, 0.6725, 0.6770, 0.6790, 0.6830.

Support levels: 0.6650, 0.6610, 0.6575, 0.6530, 0.6470, 0.6400.

Trading tips

It is relevant to increase the volumes of short positions from the current level and open pending short positions from the level of 0.6690 with the targets at 0.6610, 0.6575, and 0.6530 and stop loss 0.6740.

New Zealand Dollar vs US Dollar

BuySellSpread
0.680320.67912120

Scenario

TimeframeWeekly
RecommendationsSELL
Entry Point0.6652
Take Profit0.6610, 0.6575, 0.6530
Stop Loss0.6740
Support levels0.6400, 0.6470, 0.6530, 0.6575, 0.6610, 0.6650, 0.6690, 0.6710, 0.6725, 0.6770, 0.6790, 0.6830

Alternative scenario

RecommendationsSELL LIMIT
Entry Point0.6690
Take Profit0.6610, 0.6575, 0.6530
Stop Loss0.6740
Support levels0.6400, 0.6470, 0.6530, 0.6575, 0.6610, 0.6650, 0.6690, 0.6710, 0.6725, 0.6770, 0.6790, 0.6830
NZD/USD: the pair is falling

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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