On Monday, the NZD declined significantly, being affected by the publication of Westpac Consumer Sentiment, which fell from 113 to 106 points. At the same time, the USD managed to strengthen amid weak Existing Home Sales statistics. After a 1.8% growth in July, the indicator shrank by 4.8% from 5.58 billion to 5.31 billion in August, which is far worse than analysts expected.
Support and resistance
Bollinger Bands indicator on the daily chart is directed horizontally, while the price range is trying to remain unchanged. MACD is turning down and forming a sell signal. Stochastic is falling and approaching the oversold zone.
The indicators recommend keeping existing and opening new short positions in the short term.
Support levels: 0.6300, 0.6266, 0.6243 (7 September low), 0.6200 (important psychological barrier).
Resistance levels: 0.6344, 0.6388, 0.6431, 0.6457 (18 September local high), 0.6500, 0.6534.
Open short positions after the breakdown of the level of 0.6300 with the target at 0.6200 and stop-loss at 0.6360. Validity – 2-3 days.
Long positions can be opened after the breakout of the level of 0.6330 with the target at 0.6370 and stop-loss at 0.6300. Validity – 1 day.