Last week, amid a growth in oil prices, commodity currencies, the NZD as well, managed to strengthen against the USD.
Data on Manufacturing PMI is due today in the US. The indicator is expected to remain almost unchanged at 52.3 points. In case of a stronger result, the USD would get support, thus, affecting the NZD.
Support and resistance
At present, the NZD/USD pair is consolidating between the levels of 0.6550 and 0.6750. The upper border of a two-year downward trend at the level of 0.6700 is seen as a strong resistance for the price. After a breakout of this level, dynamics in the pair might change.
On the daily chart, a pin bar pattern was formed that suggests the price might grow and overcome the level of 0.6700. Otherwise, the price would rebound down from this level and continue falling within the downward trend.
Support levels: 0.6545, 0.6440, 0.6345.
Resistance levels: 0.6700, 0.6800, 0.6880.
Short positions can be opened below the level of 0.6545 with targets at 0.6440, 0.6345 and stop-loss at 0.6580.
Long positions can be opened from the level of 0.6710 with targets at 0.6800, 0.6880 and stop-loss at 0.6680.