Current trend

Yesterday, the NZD/USD pair fell due to US-China disagreements. During the last APEC summit in Papua New Guinea, Mike Pence said that the US could double the duties on Chinese goods and would not change course until China changes its ways. Chinese President Xi Jinping replied that protectionism in the modern world is short-sighted and doomed to failure. As a result, because of the dispute, the APEC leaders did not sign the final summit declaration. Thus, investors' hopes for Trump and Xi Jinping to conclude an agreement within the G20 meeting disappeared. The US administration launched a list of requirements of 142 points towards the PRC, and last week, China presented a list of possible concessions, which, however, did not satisfy the US. Now, further escalation of the conflict seems more likely than the reconciliation of the parties.

Today the instrument grows. USD is under pressure from a decline in the US stock market. On Thursday, it will be closed on the occasion of Thanksgiving Day.

On Tuesday, October US construction market data will be published. Building Permits is expected to decrease from 1.270 million to 1.260 million, and Housing Starts may increase from 1.201 million to 1.225 million.

Support and resistance

On the 4-hour chart, the instrument grows towards the upper border of Bollinger bands, the price range is narrowed. MACD histogram is in the positive region, keeping the buy signal.

Resistance levels: 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085.

Support levels: 0.6837, 0.6800, 0.6767, 0.6745, 0.6719, 0.6700.

Trading tips

Long positions can be opened from the current level with the target at 0.6922 and stop loss 0.6837. Implementation period: 1–3 days.

Short positions can be opened from 0.6700 with the target at 0.6610 and stop loss 0.6730. Implementation period: 2–5 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.685170.6849126

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point0.6861
Take Profit0.6922
Stop Loss0.6837
Support levels0.6700, 0.6719, 0.6745, 0.6767, 0.6800, 0.6837, 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085

Alternative scenario

RecommendationsSELL STOP
Entry Point0.6700
Take Profit0.6610
Stop Loss0.6730
Support levels0.6700, 0.6719, 0.6745, 0.6767, 0.6800, 0.6837, 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085
NZD/USD: general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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