On Monday, downward dynamics in the NZD/USD pair resumed. Due to uncertainty over the timing of a US interest rates rise, market participant are focusing closely on any macroeconomic or news releases from the US.
Moreover, the NZD was negatively affected by not so favorable macroeconomic statistics, released on Monday in New Zealand. Visitor Arrivals grew by 8.9% in October against the previous 12.2%; however, seasonal dependence of this indicator should be noted.
Support and resistance
Bollinger Bands indicator on the daily chart is turning to sideways, while the price range is narrowing down. MACD is trying to turn down, still keeping its buy signal. Stochastic has failed to reach the border of the overbought zone and turned down.
It is recommended to wait for clearer trading signals.
Support levels: 0.6500, 0.6457, 0.6428 (18 November low), 0.6400.
Resistance levels: 0.6534, 0.6560, 0.6585 (11 November high), 0.6618, 0.6648.
Long positions can be opened after the breakout of the level of 0.6550 (with appropriate indicators signals) with targets at 0.6640, 0.6690 and stop-loss at 0.6520. Validity – 1-2 days.
Short positions can be opened when the price reverses and breaks down the level of 0.6490 with targets at 0.6440, 0.6400 and stop-loss at 0.6510. Validity – 1-2 days.