Current trend

Since the beginning of the week, the pair continues strengthening.

Today attention needs to be paid to publications from the US on the final GDP and the GDP Price Index for the third quarter, Existing Home Sales for November and the Richmond Fed Manufacturing Index for December.

Later, Trade Balance data for November will be published in New Zealand. Economists expect trade balance deficit to decrease in November from 963 million to 809.5 million, and for the year to amount to 3.76 billion NZD. There are no other important publications from New Zealand until the end of the year.

Support and resistance

The pair remains between strong levels at 0.6750 (ЕМА144 on the daily chart) and 0.6860 (ЕМА200 on the daily chart, 23.6% Fibonacci correction).

A breakdown of the level of 0.6750 would send the pair towards 0.6685 (ЕМА144), 0.6665 (ЕМА200 on the 4-hour chart), while a consolidation below the level of 0.6655 (ЕМА50 on the daily chart) would resume the downward trend with targets at 0.6465, 0.6230 (year lows). At the same time, a price consolidation above the level of 0.6860 can open the way towards the level of 0.7240 (38.2% correction).

On the daily and weekly charts, OsMA and Stochastic suggest a growth continuation, but on the 4-hour chart Stochastic is in the overbought zone.

Support levels: 0.6750, 0.6685, 0.6665, 0.6655.

Resistance levels: 0.6860, 0.7000.                                                                

Trading tips

Short positions can be opened below the level of 0.6800 with targets at 0.6750, 0.6680 and stop-loss at 0.6830.

Long positions can be opened above the level of 0.6840 with targets at 0.6900, 0.6970 and stop-loss at 0.6810.

NZD/USD: between strong levels

NZD/USD: between strong levels




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