Yesterday the pair strengthened showing volatile trade during the day.
The NZD was pressured by data on the Consumer Price Index for the fourth quarter of 2015 from New Zealand that grew by only 0.1% against the previous month, while economists predicted a 0.4% growth.
Later in the day, the pair was supported by poor data on the Consumer Price Index from the US that came out worse than forecasts as well. In December, the index fell by 0.1% against a 0.0% forecast. In absolute values, the index fell from 237.34 to 236.53 points.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is narrowing. MACD is growing and trying to form a buy signal. Stochastic is growing as well as it left the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6428 (local low), 0.6400, 0.6344 (local low), 0.6300.
Resistance levels: 0.6475 (local high), 0.6500, 0.6534, 0.6560, 0.6600 (8 January high), 0.6660, 0.6690, 0.6724.
Long positions can be opened after the breakout of the level of 0.6435 with targets at 0.6500, 0.6540 and stop-loss at 0.6410. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.6400 with targets at 0.6360, 0.6300 and stop-loss at 0.6430. Validity – 2-3 days.