Since the end of March the pair NZD/USD has been trading in a downward channel and this Tuesday reached its minimum level 0.6815 since July 2010. The downtrend was triggered by RBNZ decision on interest rate reduction from 3.50% to 3.25%, as well as by weak Q1 GDP, which grew only by 0.2% vs. 0.6% forecast.
On Tuesday, the pair attempted correction after a negative report on US Durable Goods Orders, which reduced by 1.8% in May. Final Q1 GDP report, published today, is important for macroeconomic statistics. The indicator should be better-than-expected (0.2% slowdown vs. 0.7% forecast). It may support the US currency.
Support and resistance
The price is testing the middle MA of Bollinger Bands at the level 0.6878. The breakdown leads to the further growth to the level 0.6930 and maybe to 0.6990. However, in general, the downtrend resumes, and the correction may not last long.
Generally, technical indicators suggest further growth. MAs of Bollinger Bands are going down, but the price chart is heading up. MACD is in the negative zone, it has overcome the signal line, showing the possibility to open long positions. Only Stochastic lines are moving up.
Support levels: 0.6815, 0.6800.
Resistance levels: 0.6878, 0.6930, 0.6990.
Short-term sell positions can be opened at the current price with the target 0.6930. At this level the pending sell order should be placed with the target 0.6815.