On Tuesday, the NZD/USD pair fell to its lows since the beginning of the month. The NZD is losing its positions against the USD amid an active correction in the US currency.
Yesterday, a series of macroeconomic indicators were released in the US and New Zealand. In February, NY Empire State Manufacturing Index grew to -16.64 from -19.37 points that was far below expectations. NAHB Housing Market Index declined to 58 from 61 points against the forecast of 60 points.
The NZD managed to get slight support from data on GDT Price Index which was up to -2.8% in February from -7.4%.
Support and resistance
Bollinger Bands indicator on the daily chart is slowing down its growth while the price range is narrowing down. MACD is declining and keeping a sell signal. Stochastic is falling and approaching the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6562, 0.6534, 0.6500, 0.6461 (2 February low), 0.6416 (27 January low).
Resistance levels: 0.6600, 0.6660, 0.6697, 0.6724, 0.6752 (5 February high), 0.6787.
Long positions can be opened is the price turns up at the level of 0.6562 with the target at 0.6620 and stop-loss at 0.6550. Validity – 2-3 days.
Short positions can be opened is the price breaks down the level of 0.6550 with targets at 0.6500, 0.6470 and stop-loss at 0.6580. Validity – 2-3 days.