The pair has maintained an upward trend due to weak data on unemployment claims in the US and uncertain statistics on major US indices.
Despite the rapid growth, the trend is unlikely to continue, most likely, the pair will break off from strong resistance and go down. Even in a situation of weakening of the US currency and a favorable fundamental stats for NZD, New Zealand’s excessively soft monetary policy is putting serious pressure on the pair.
Today, special attention should be paid to data on industrial production in the United States.
Support and resistance
On the daily chart, the technical indicators have changed the signal to ascending, and on higher timeframes, they still show a signal to decline. Thus, MACD on the weekly chart indicates the preservation of a high volume of long positions, and the Bollinger bands are directed downwards.
Support levels: 0.6790, 0.6770, 0.6725, 0.6700, 0.6650, 0.6600, 0.6545, 0.6500, 0.6420.
Resistance levels: 0.6825, 0.6850, 0.6905, 0.6950, 0.6970, 0.7020, 0.7050.
In this situation, it is reasonable to open short positions at the current level with the target at 0.6600, in the medium term – 0.6420, and a stop loss at 0.6920.
New Zealand Dollar vs US Dollar
|Take Profit||0.6600, 0.6420|
|Support levels||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, 0.7020, 0.7050|
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