Current trend

The New Zealand currency continues to decline against the US dollar as part of a downward trend. The main catalyst for the fall of the pair was the growth of investment attractiveness to the US currency and a weak macroeconomic background for New Zealand. Additional pressure on the pair was provided by the comments of the RBNZ representatives on the possible lowering of the interest rate, right after that the pair dropped down, losing more than 150 points at the end of the trading week. At the beginning of the current trading week momentum persisted and the pair went lower, now “kiwi” against the US dollar is trading at around 0.6550.

Today, special attention should be paid to retail sales and industrial production of the United States, and at the end of the week there will be releases on the labor market and the construction sector.

Support and resistance

In the short term, demand for the US dollar and its growth towards major currencies is expected to increase. Technical indicators confirm the fall forecast of the pair: MACD indicates an increase in the volume of short positions; the Bollinger bands are directed downwards.

Support levels: 0.6510, 0.6490, 0.6430, 0.6350, 0.6240.

Resistance levels: 0.6575, 0.6610, 0.6650, 0.6690, 0.6770, 0.6830.

Trading tips

In this situation, it is important to increase the volume of short positions from the current level and set pending sell orders at resistance levels of 0.6610, 0.6650 with targets at 0.6350, 0.6240 and stop loss at 0.6680

New Zealand Dollar vs US Dollar

BuySellSpread
0.665740.6654925

Scenario

TimeframeWeekly
RecommendationsSELL
Entry Point0.6551
Take Profit0.6350, 0.6240
Stop Loss0.6680
Support levels0.6240, 0.6350, 0.6430, 0.6490, 0.6510, 0.6575, 0.6610, 0.6650, 0.6690, 0.6770, 0.6830

Alternative scenario

RecommendationsSELL LIMIT
Entry Point0.6610, 0.6650
Take Profit0.6350, 0.6240
Stop Loss0.6680
Support levels0.6240, 0.6350, 0.6430, 0.6490, 0.6510, 0.6575, 0.6610, 0.6650, 0.6690, 0.6770, 0.6830
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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