In early November, the NZD/USD pair left the long-term downward trend, breaking through the upper border of the downward range. Later, the price grew steadily due to the increased demand for the oversold NZD and New Zealand's strong labor market data.
The instrument decorrelates against the other dollar pairs, which indicates the growth of the New Zealand currency rate itself against the strong USD. The Reserve Bank of New Zealand maintains a cautious approach to monetary policy but notes a high probability of increasing economic growth rates at the end of this and early next year. At the end of last trading week, the pair began a downward correction due to positive US releases and a change in trading sentiment. In the short term, USD will dominate, and the pair will be corrected further. In the future, the upward trend will develop to the targets of 0.7020, 0.7050.
Today is an official day off in the USA, and no high volatility is expected. On Wednesday, statistics on US inflation will be published, and on Thursday there will be data on retail sales, industrial production, and the labor market.
Support and resistance
The trend has changed, and now it is better to open long positions within the current channel. Technical indicators also changed the signal to the upward one: the volumes of MACD long positions increased significantly, Bollinger bands are directed upwards.
Resistance levels: 0.6725, 0.6770, 0.6790, 0.6825, 0.6850, 0.6905, 0.6950, 0.6970.
Support levels: 0.6700, 0.6650, 0.6600, 0.6545, 0.6500, 0.6420, 0.6400.
It is better to increase the volumes of long positions from the current level with the targets at 0.7020, 0.7050 and stop loss at 0.6570.
New Zealand Dollar vs US Dollar
|Take Profit||0.7020, 0.7050|
|Support levels||0.6400, 0.6420, 0.6500, 0.6545, 0.6600, 0.6650, 0.6700, 0.6725, 0.6770, 0.6790, 0.6825, 0.6850, 0.6905, 0.6950, 0.6970|
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