Current trend

Today, the pair showed a moderate decline against the backdrop of the RBNZ decision on monetary policy.

The New Zealand regulator left the interest rate at the level of 1.75% as expected. At the same time, comments on monetary policy were extremely cautious, which disappointed investors. The RBNZ is interested in a low exchange rate of NZD in order to maintain demand for exports. This measure is aimed at mitigating the consequences of the US-China trade conflict.

Yesterday, the Fed announced the increase in the interest rate by 25 basis points, which was expected by the market. USD strengthening was limited as a number of financiers saw signs of overheating of the American economy. In this regard, investors are expecting today's speech of the Fed head Powell.

Today, a number of significant macroeconomic releases are expected, the publication of which will create volatility in the market. At 14:30 (GMT+2), data on GDP, as well as statistics on personal spending will be published in the US. The speech by the Fed Head Jerome Powell is due at 22:30 (GMT+2).

Support and resistance

On the H4 chart the instrument is trading in the lower part of Bollinger Bands. The indicator corrected horizontally and the price range reduced, which indicates further downward correction. MACD histogram is consolidating at the zero mark; the signal for entering the market is not formed. Stochastic is approaching the oversold area boundary; a buy signal can be formed during the day.

Resistance levels: 0.6653, 0.6671, 0.6701, 0.6727, 0.6753.

Support levels: 0.6633, 0.6600, 0.6562, 0.6534, 0.6505.

Trading tips

Short positions may be opened below 0.6630 with target at 0.6570 and stop loss at 0.6660.

Long positions may be opened above 0.6660 with target at 0.6700 and stop loss at 0.6640.

Implementation period: 1-2 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.688240.6872599

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point0.6625
Take Profit0.6570
Stop Loss0.6660
Support levels0.6505, 0.6534, 0.6562, 0.6600, 0.6633, 0.6653, 0.6671, 0.6701, 0.6727, 0.6753

Alternative scenario

RecommendationsBUY STOP
Entry Point0.6665
Take Profit0.6700
Stop Loss0.6640
Support levels0.6505, 0.6534, 0.6562, 0.6600, 0.6633, 0.6653, 0.6671, 0.6701, 0.6727, 0.6753
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.

Start Trading
Follow us in social networks!
Live Chat
Leave feedback