On Tuesday, the NZD/USD pair was trading mixed and ended the session with a slight gain. Demand for the pair has been quite high due to general weakness in the US currency and a fall in investors’ risk appetite. Moreover, the USD is under pressure from the forthcoming press-conference with Fed’s Chair as Janet Yellen might confirm the Regulator is in no hurry to continue raising interest rates.
During the morning session on Wednesday, the NZD is gaining support from data on Retail Sales, released in New Zealand; however, the pair is losing its positions. Electronic Card Retail Sales grew by 0.3% in January after a 0.2% fall in the previous month.
Support and resistance
Bollinger Bands indicator on the daily chart is directed up while the price range remains almost unchanged and wide enough for the current dynamics in the pair. MACD is keeping a weak Bearish signal. Stochastic is falling in the middle of its range.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6600, 0.6562 (9 February low), 0.6534, 0.6500, 0.6461 (2 February low), 0.6416 (27 January low), 0.6381, 0.6347 (20 January low).
Resistance levels: 0.6660 (near 9 February high), 0.6697, 0.6724, 0.6752 (5 February high), 0.6787 (4 January level), 0.6835.
Long positions can be opened after the price turns up near the level of 0.6600 with targets at 0.6690, 0.6740 and stop-loss at 0.6580. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.6570 with targets at 0.6500, 0.6470 and stop-loss at 0.6600. Validity – 2-3 days.