For more than half a year, the NZD/USD pair has been trading within the stable wide downward channel. In early October, the instrument updated its lows due to strong US statistics and a decrease in demand for NZD. After rebounding from the lower border and local minimum at 0.6420, the price began to rise, and now it is trading at the upper border of the channel around 0.6600, 0.6615.
At the beginning of the current trading week, high volatility is not expected due to the lack of key macroeconomic releases in New Zealand and the USA. Later, attention should be paid to US data on the Q3 economic growth rate, Durable Goods Orders and labor market statistics.
Support and resistance
The downward trend will continue to the local minimum of 0.6420, and then the instrument will renew the lows at the levels of 0.6360, 0.6340. In the medium term, an upward reversal from the levels of 0.6225, 0.6300 is possible.
Technical indicators confirm further decline: MACD keeps the high volumes of short positions, Bollinger bands are directed downwards.
Resistance levels: 0.6600, 0.6615, 0.6650, 0.6700, 0.6725, 0.6770.
Support levels: 0.6545, 0.6420, 0.6360, 0.6340, 0.6275, 0.6230, 0.6200.
Short positions can be opened from the current level with the targets at 0.6360, 0.6340 and stop loss 0.6690.
New Zealand Dollar vs US Dollar
|Take Profit||0.6360, 0.6340|
|Support levels||0.6200, 0.6230, 0.6275, 0.6340, 0.6360, 0.6420, 0.6545, 0.6600, 0.6615, 0.6650, 0.6700, 0.6725, 0.6770|
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