Current trend

After opening of the Asian session, the NZD significantly strengthened against the USD and reached the level of 0.6784.

Today, the ECB Monetary Policy meeting is due, where the regulator could expand its current QE program that would support the US Dollar and pressure the NZD/USD pair. Also today, the labour market statistics are due from the US. The number of Initial Jobless Claims is expected to increase from 255 to 265 thousands. If forecasts are confirmed, the data will pressure the USD.

Support and resistance

After its fall during all last week, the pair found a support at the level of 0.6700 and its growth is likely to continue.

On the 4-hour chart, MACD and Stochastic recommend long positions.

Support levels: 0.6700 (psychologically important level), 0.6645 (38.2% Fibonacci correction), 0.6565 (50% correction).

Resistance levels: 0.6784 (Asian session high), 0.6845 (upper MA of Bollinger Bands), 0.6900 (psychologically important level).

Trading tips

Long positions can be opened after the breakout of the level of 0.6790 with targets at 0.6845, 0.6900 and stop-loss at 0.6750.

Short positions can be opened from the level of 0.6700 with targets at 0.6650, 0.6570 and stop-loss at 0.6710. 

NZD/USD: review and forecast

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