NZD remains in the long-term downward trend against USD.
At the end of September, the pair went up, but, having reached the resistance level of 0.6700, which was the upper border of the rangere, reversed and headed down. Easily breaking the local minimum of 0.6500, the instrument went down to the lower border of the range at 0.6420, after which the ascending wave formed to the upper border of the channel (0.6600). At the end of last week, weak data on the US labor market and inflation came out, USD dropped significantly. Today, the pair is starting to move up on strong data on the US industrial production, which was published yesterday.
During the day, one should focus on the publication of the FOMC minutes, and on releases on the US labor market at the end of the week.
Support and resistance
FOMC protocol can be a catalyst that will give strength to USD and keep the trend within the long-term downward channel. The first support level, from which the pair may change the trend, is the next lower border of the downward channel at 0.6340 (local minimum of January 2016). If it is broken down, one can expect a longer correction, or even a trend change from the level of 0.6225. At the moment, short positions remain relevant.
Technical indicators confirm the preservation of the downward movement: on D1 chart and above, MACD indicates the growth of volume of short positions, and Bollinger Bands are pointing downwards.
Support levels: 0.6500, 0.6420, 0.6360, 0.6340, 0.6275, 0.6225.
Resistance levels: 0.6600, 0.6615, 0.6650, 0.6725, 0.6770, 0.6905.
In this situation, short positions may be opened from the current level with targets at 0.6340, 0.6225 and stop loss at 0.6650.
New Zealand Dollar vs US Dollar
|Take Profit||0.6340, 0.6225|
|Support levels||0.6225, 0.6275, 0.6340, 0.6360, 0.6420, 0.6500, 0.6600, 0.6615, 0.6650, 0.6725, 0.6770, 0.6905|
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