Current trend

Yesterday the pair strengthened by 65 points after the speech of Fed Chairman Jerome Powell.

In general, the speech was neutral. USD was under pressure due to the mentioned necessity of balancing the current monetary policy in order to avoid "overheating" of the economy. Nevertheless, the Fed chief continues to insist on a gradual increase in the key rate, since US macroeconomic indicators of the labor market and inflation corresponded with a policy of tightening. Meanwhile, the New Zealand regulator has published negative data on the business optimism index. According to the report, business investment in the country is at a low level, which is a negative signal when assessing the state of the economy as a whole.

Today at 15:30 (GMT+2), the US labor market and inflation data will be published. The release of the Fed’s Meeting Minutes is due at 21:00 (GMT+2). Both news releases can create strong market volatility. Most investors expect USD to grow.

Support and resistance

On the 4-hour chart, the instrument was corrected to the upper border of Bollinger bands, which is the key resistance level. The indicator is directed sideways, and the price range has expanded significantly, which is the basis for further growth. MACD histogram is in the positive zone, its volumes continue to grow, keeping a buy signal. Stochastic reversed downwards at the border of the overbought area.

Resistance levels: 0.6855, 0.6907, 0.6956, 0.7022.

Support levels: 0.6822, 0.6790, 0.6737, 0.6701, 0.6663, 0.6629.

Trading tips

Short positions can be opened from the current level with the target at 0.6765 and stop loss 0.6900.

Long positions can be opened above the level of 0.6905 with the target at 0.6960 and stop loss 0.6885.

Implementation period: 1–2 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.685130.6848924

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point0.6877
Take Profit0.6765
Stop Loss0.6900
Support levels0.6629, 0.6663, 0.6701, 0.6737, 0.6790, 0.6822, 0.6855, 0.6907, 0.6956, 0.7022

Alternative scenario

RecommendationsBUY STOP
Entry Point0.6910
Take Profit0.6960
Stop Loss0.6885
Support levels0.6629, 0.6663, 0.6701, 0.6737, 0.6790, 0.6822, 0.6855, 0.6907, 0.6956, 0.7022
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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