Current trend

This week, the pair NZD/USD has grown, reaching two-week highs at the level of 0.7740 by Wednesday. Strong growth of the NZD was caused by macro-economic statistics. U.S. consumer confidence index fell to 95.2% in April. The index showed the lowest result of this year, which was not expected. On the other hand, NZD was supported by trade balance of New Zealand. In March this index amounted to 631 million dollars, which was twice as much as expected.

Today, investors are waiting for the outcome of the U.S. Fed meeting and interest rate decision of the Reserve Bank of New Zealand. It is expected that both of the regulators will keep interest rates at the previous levels. Note also that, negative macro-economic statistics on the main sectors of the U.S. economy can force the officials to postpone tightening of the monetary policy until the next year.

Support and resistance

Currently, the market is undergoing correction, which can reach the level of 0.7645 (middle line of Bollinger bands). From this level the price can reverse and start upward movement to the previous highs of 0.7740. If this level is broken down, the price will go up to 0.7800.

Technical indicators demonstrate that the price will continue to decline in the near future. MACD histogram is in the positive zone; its volumes are decreasing. Stochastic lines have turned downwards.

Support levels: 0.7645, 0.7600 and 07550.

Resistance levels: 0.7740 and 0.7800.

Trading tips

In the current situation it makes sense to open short-term short positions with the target of 0.7645. If the price consolidates below this level, the price can drop to 0.7600. Pending buy orders can be placed at the level of 0.7645 with the targets of 0.7740 and 0.7800.

NZD/USD: correction will be of short duration

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