Current trend

Last Friday, the pair lost more than 50 points after the publication of weak macroeconomic stats from China.

Most investors expected NZD/USD to strengthen due to the progress in trade negotiations between the United States and China. However, on December 14, a strong pressure on the instrument was exerted by a drop in the growth rates of retail sales and industrial production in China.

This week market participants are waiting for the Fed's decision on the interest rate, which will be announced on Wednesday, December 19 at 21:00 (GMT+2). Investors expect more detailed information on the number of increases in 2019.

Today, there are no significant macroeconomic publications from both sides, and the pair will continue to move within the current trend. Tomorrow at 15:30 (GMT+2), data on the construction sector will be published in the United States. At 23:45 (GMT+2), the publication of New Zealand GDP statistics for the 3rd quarter of this year is expected.

Support and resistance

On the 4-hour chart, the instrument was corrected to the bottom line of Bollinger Bands. The indicator is directed down, and the price range has expanded, which is the basis for a further fall. The MACD histogram is in the negative zone, keeping a strong sell signal. Stochastic left the oversold area, generating a strong buy signal.

Support levels: 0.6629, 0.6662, 0.6718, 0.6760, 0.6790.

Resistance levels: 0.6832, 0.6872, 0.6907, 0.6970.

Trading tips

Short positions can be opened at the current price with the target at 0.6705 and a stop loss at 0.6845.

Long positions should be opened above the level of 0.6835 with the target at 0.6910 and a stop loss at 0.6795.

Implementation period: 1-3 days.

New Zealand Dollar vs US Dollar

BuySellSpread
0.687930.6873954

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point0.6807
Take Profit0.6705
Stop Loss0.6845
Support levels0.6629, 0.6662, 0.6718, 0.6760, 0.6790, 0.6832, 0.6872, 0.6907, 0.6970

Alternative scenario

RecommendationsBUY STOP
Entry Point0.6840
Take Profit0.6910
Stop Loss0.6795
Support levels0.6629, 0.6662, 0.6718, 0.6760, 0.6790, 0.6832, 0.6872, 0.6907, 0.6970
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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