NZD remains in the downward trend against USD. In mid-August, the pair won back a part of losses, having gained more than 150 points and reaching a key resistance level of 0.6710.
The main catalyst for growth was favorable data on retail sales, major indices, and the trade balance of New Zealand. At the same time, the United States published weak releases on orders for durable goods and on Services PMI. Now the pair stopped at the upper border of the descending channel and moved into lateral consolidation.
On Wednesday and Thursday data on the growth rate of the US economy for Q2 2018 and on the labor market will be published.
Support and resistance
In the medium term, the pair is unlikely to change direction and move to an uptrend. Most likely, the current trend will continue: the instrument will go down again with the possibility of testing new local minima. In the medium term, the pair may fall to the low of the beginning of 2016 at the level of 0.6350. An alternative scenario is a transition to the lateral consolidation.
Technical indicators on D1 chart confirm decline forecast: MACD indicates the preservation of the high volume of short positions, and Bollinger Bands are pointing downwards.
Support levels: 0.6650, 0.6610, 0.6575, 0.6545, 0.6510, 0.6490.
Resistance levels: 0.6710, 0.6725, 0.6770, 0.6790, 0.6830, 0.6850, 0.6895.
In this situation, short positions may be opened from the current level with targets at 0.6545, 0.6490 and stop loss at 0.6740.
New Zealand Dollar vs US Dollar
|Take Profit||0.6545, 0.6490|
|Support levels||0.6490, 0.6510, 0.6545, 0.6575, 0.6610, 0.6650, 0.6710, 0.6725, 0.6770, 0.6790, 0.6830, 0.6850, 0.6895|
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