Last Friday the pair significantly declined after the publication of the US NFPR data for October that substantially exceeded forecasts. Due to increased probability of an interest rates hike in the US in December, pair’s prospects remain grim.
Furthermore, worsening property market conditions in New Zealand, low dairy products prices, falling GDP growth rates and increasing trade balance deficit in the country could force the RBNZ to cut its interest rates further, to the possibility of which its Governor Graeme Wheeler pointed out few times before.
Tomorrow attention needs to be paid to a publication of the RBNZ Financial Stability Report and RBNZ Governor Graeme Wheeler Speech.
Support and resistance
The pair is moving along a descending channel on the weekly chart with the upper border at 0.6795 (ЕМА144 on the daily chart) and lower border at 0.6100.
The price broke down important support level at 0.6615 (ЕМА50 and lower border of a correctional ascending channel on the daily chart) and as long as it remains below the levels of 0.6940 (ЕМА200 on the daily chart), 0.6860 (23.6% Fibonacci correction), 0.6795 (ЕМА144), the downward trend remains.
On the 4-hour chart, OsMA and Stochastic turned to purchases indicating a correction in the pair, while on the daily, weekly and monthly charts they indicate a fall continuation.
Support levels: 0.6500, 0.6470, 0.6400.
Resistance levels: 0.6615, 0.6700, 0.6795.
Open short positions below the level of 0.6510 with targets at 0.6470, 0.6400 and stop-loss at 0.6540.
Long positions can be opened after the price consolidation above the level of 0.6600 with the target at 0.6660 and stop-loss at 0.6570.