NZD changed a trend against USD.
For the last six months, the pair rapidly declined, first sharply, and then moving into a wide descending channel. Several factors were catalysts for the fall; in particular, the growth of the US dollar due to favorable macroeconomic statistics and a decline in demand for the New Zealand currency, which was losing ground amid the loose monetary policy of the RBNZ and the weak fundamental indicators of recent months. At the end of last week, the instrument managed to overcome the key resistance level of 0.6600 and get out of the medium-term downward trend.
One should note that the US dollar weakened at the end of the week, despite strong releases on the labor market. It is quite possible that the upcoming congressional elections, scheduled for November 6, are to blame.
Support and resistance
Today, the US currency may maintain its momentum as we approach the elections. Despite the low rating of Donald Trump, the Republicans are likely to receive the majority in Congress. Against this background, the dollar will receive serious support and the pair will sharply go down. An alternative scenario is the growth of the instrument after consolidation above the level of 0.6700.
Technical indicators on D1 chart show a change in the signal for an upward one, but W1 and M1 still indicate that the downward trend is preserved: MACD indicates the preservation of the high volume of short positions, and Bollinger Bands are pointing downwards.
Support levels: 0.6600, 0.6545, 0.6500, 0.6420, 0.6340, 0.6275, 0.6200.
Resistance levels: 0.6700, 0.6725, 0.6790, 0.6850, 0.6970, 0.7020.
In this situation, short positions may be opened from the current level with targets at 0.6340, 0.6275 and stop loss at 0.6740.
New Zealand Dollar vs US Dollar
|Take Profit||0.6340, 0.6275|
|Support levels||0.6200, 0.6275, 0.6340, 0.6420, 0.6500, 0.6545, 0.6600, 0.6700, 0.6725, 0.6790, 0.6850, 0.6970, 0.7020|
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