The NZD/USD pair remains under pressure from the fundamental factors, such as poor macroeconomic indicators in New Zealand, falling commodities and dairy products prices, the economic growth slowdownin China, expectations of the interest rate cut by the RBNZ, and monetary policy tightening by the Fed, aimed at interest rates hike in the US.
Important news from Nez Zealand for the this week include Electronic Card Retail Sales on Tuesday, Business NZ PMI and Food Price Index on Thursday, and Retail Sales data for the second quarter on Friday.
Any local strengthening in the pair should be considered as an opportunity to open short positions.
Support and resistance
On the daily chart, OsMA and Stochastic indicate a short-term upward correction (most likely not further than 0.6700, 0.6760). On the 4-hour chart, they are about to give sell signals pointing out to a good opportunity to open short positions.
Supportlevels: 0.6500 (local low), 0.6435 (Fibonacci 61.8%), 0.6400, 0.6000 (2006 lows).
Resistance levels: 0.6640, 0.6690, 0.6760, 0.6800, 0.6890.
Open short positions from the current levels and from 0.6610, 0.6635, 0.6690with targets at 0.6500, 0.6450, 0.6435, 0.6400 and stop-loss at 0.6790.
Long positions can be opened after the breakout of the level of 0.6890 with targets at 0.6900, 0.6950, 0.7000.