The New Zealand dollar continues to slightly strengthen against the US currency. The pair is trading close to the resistance level of 8/8 Murray (0.6815), after the breakdown of which the next target will be the level of 0.6897.
Experts believe that the US dollar will continue to strengthen its position and the main reason here is a more aggressive interest rate policy by the Fed. Many market participants predict with a probability of more than 80% that the rate will be raised once again at the end of this year and possibly again in March 2019.
The New Zealand dollar is adversely affected by falling oil prices and the trade war between the United States and China. New Zealand is an important trading partner of China and the slowdown of the economy of the latter can also adversely affect the NZD.
On Thursday, the index of business activity in New Zealand for October will be published, a value above 50 points will indicate a good economic situation.
Support and resistance
The Stochastic indicator is at 75 points and does not give signals to open trading positions.
Resistance levels: 0.6815, 0.6897.
Support levels: 0.6774, 0.6713.
Short positions can be opened from the resistance level of 0.6815 with stop-loss orders at 0.6897 and a take profit at 0.6713.
New Zealand Dollar vs US Dollar
|Support levels||0.6713, 0.6774, 0.6815, 0.6897|
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