Current trend

Yesterday NZD strengthened against USD due to the release of ambiguous macroeconomic statistics from the United States. Initial Jobless Claims data exceeded the forecast, but the decline in Philadelphia Fed Manufacturing Survey index and in Housing Starts data affected USD negatively.

Today, the pair continued to rise due to the increase in Q2 Producer Price Index in New Zealand. The dynamics can be affected by US statistics: Michigan Consumer Sentiment Index release at 16:00 (GMT+2) and Baker Hughes US Oil Rig Count publication at 19:00 (GMT+2). The market expects moderate volatility.

Support and resistance

On the daily chart, the downward movement is in the correction, the pair is traded near the lower border of Bollinger bands, and the price range is extended, which indicates a possible resumption of the downward trend. MACD histogram is in the negative area, keeping the signal to the opening of short positions.

Resistance levels: 0.6612, 0.6684, 0.6745, 0.6847, 0.6924.

Support levels: 0.6544, 0.6500, 0.6450.

Trading tips

Short positions can be opened from the level of 0.6540 with the target at 0.6450 and stop loss 0.6600. Implementation period: 1–3 days.

Long positions can be opened from the level of 0.6750 with the target at 0.6840 and stop loss 0.6710. Implementation period: 3–5 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.684150.6838926

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.6540
Take Profit0.6450
Stop Loss0.6600
Support levels0.6450, 0.6500, 0.6544, 0.6612, 0.6684, 0.6745, 0.6847, 0.6924

Alternative scenario

RecommendationsBUY STOP
Entry Point0.6750
Take Profit0.6840
Stop Loss0.6710
Support levels0.6450, 0.6500, 0.6544, 0.6612, 0.6684, 0.6745, 0.6847, 0.6924
NZD/USD: general analysis

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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