NZD/USD: an upward momentum maintains

Current trend

In December, New Zealand currency grew by more than 300 points against US dollar. In the beginning of the year, the pair entered the sideways consolidation, but the upward momentum has maintained. Today the pair has tested the local maximum and the key resistance level 0.7130 again.

Today and tomorrow the USA employment data releases, PMI and factory orders are worth traders’ attention.

Support and resistance

In the short term, the breakout of the key resistance level of 0.7130 and the growth to the new highs at 0.7180, 0.7200 (maximum of the middle of October of the last year) is expected.

Then the instrument will enter slow correctional movement, as the investors will close profitable positions and sell the pair. Technical indicators are restricting, grow signal changes into consolidation one, MACD reflects the rapid fall of short positions volumes, Bollinger Bands consolidated horizontally.

Resistance levels: 0.7130, 0.7180, 0.7200, 0.7270, 0.7310, 0.7350.

Support levels: 0.7050, 0.7010, 0.6965, 0.6945, 0.6920, 0.6895, 0.6880.

Trading tips

It’s better to increase the volume of long positions at the current level and open pending long positions from strong support levels of 0.7110, 0.7070, 0.7050 with the target at 0.7200 and stop loss at 0.7020.

New Zealand Dollar vs US Dollar

Buy Sell Spread
0.71459 0.71436 23

Scenario

Timeframe Day’s Range
Recommendations BUY
Entry Point 0.7124
Take Profit 0.7200
Stop Loss 0.7055
Support levels 0.6880, 0.6895, 0.6920, 0.6945, 0.6965, 0.7010, 0.7050, 0.7130, 0.7180, 0.7200, 0.7270, 0.7310, 0.7350

Alternative scenario

Recommendations BUY LIMIT
Entry Point 0.7110, 0.7070, 0.7050
Take Profit 0.7200
Stop Loss 0.7020
Support levels 0.6880, 0.6895, 0.6920, 0.6945, 0.6965, 0.7010, 0.7050, 0.7130, 0.7180, 0.7200, 0.7270, 0.7310, 0.7350

NZD/USD: an upward momentum maintains

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