After a fall at the beginning of the week, the New Zealand currency started trading flat at local lows. Investors are waiting for information concerning the timing of the US interest rate hike, while recent US macroeconomic statistics only fuel speculations about this issue.
Moreover, highly important new releases are due in eurozone and the US. On Thursday, ECB president Mario Draghi gives a press conference. He will comment on the prospects for the eurozone economy and the situation in China. Furthermore, EU GDP for the second quarter and US labor market statistics are published on Friday.
Support and resistance
Bollinger bands indicator on the daily chart keeps downward dynamics; the price range is still widening. MACD is trying to turn up, while still keeping a sell signal. Stochastic is in the oversold zone and is trying to grow.
It is recommended to wait for clearer trading signals.
Support levels: 0.6322 (near current local lows), 0.6300, 0.6253 (24 August low), 0.6200.
Resistance levels: 0.6388 (1 September local high), 0.6431, 0.6463, 0.6500 (near 28 August high), 0.6534, 0.6560, 0.6600, 0.6649, 0.6708 (21 August high), 0.6738.
After the breakout and consolidation above the level of 0.6388, open long positions with the target at 0.6500 and stop-loss at 0.6322, 0.6300.
After the breakdown of 0.6322, 0.6300, open short positions with the target at 0.6200 and stop-loss at 0.6388, 0.6400.