On the 4-hour chart, the NZD/USD pair is falling. The closest support level is at –1/8 Murrey or 0.6760. The demand for USD is due to the Fed, which continues to raise interest rates. Meanwhile, in New Zealand, for more than two years, the rate has been remaining unchanged at 1.75% due to low inflation and risks associated with a trade war. The country actively interacts with China, and the slowdown in the Chinese economy can also have a negative impact on the NZD.
The second factor that supports USD is the imminent political crisis in Italy, where the chief economist of the League, Claudio Borghi, expressed doubts about the benefits of EU membership. According to his comments, the country would rather cope with the economic crisis, having its own national currency. Against this background, the yield of Italy's bonds rose by more than 3.3%, and USD began to strengthen against its competitors.
As for important economic news, on Friday, US unemployment data and Nonfarm Payrolls will be published.
Support and resistance
Stochastic is at 55 points and does not give signals for opening positions.
Resistance Levels: 0.6607, 0.6650.
Support levels: 0.6550, 0.6515.
Short positions can be opened after the breakdown of the level of 0.6550 with the target at 0.6515 and stop loss at 0.6607.
New Zealand Dollar vs US Dollar
|Support levels||0.6515, 0.6550, 0.6607, 0.6650|
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