NZD/USD: correction continues

Current trend

On Friday, NZD broke the upper border of the medium-term downward trend and went higher against USD. Today, the momentum has been preserved, and the pair continues to increase due to the poor US employment market data: the Unemployment Rate grew by 0.2%, Initial Jobless Claims indicator both projected values ​​and previous ones. For two trading days, the instrument gained more than 80 points and consolidated near the level of 0.6850.

At the beginning of the week, there is a lack of key releases in the US and New Zealand. Next, the traders will focus on Consumer Price Index and employment market data.

Support and resistance

The upward momentum will maintain due to a decrease in demand for USD. The pair passed the psychological level of local lows 0.6820, 0.6790 and was consolidated higher, which technically can be considered as a turn. However, it is possible that the instrument is in a long correction, which will end with a new downward wave.

An alternative scenario is the pair’s growth to a strong resistance level of 0.6920 and a decrease from this mark to a local minimum. On the daily chart, technical indicators keep the decrease signal, MACD’s short positions’ volumes are high, Bollinger bands are directed downwards.

Resistance levels: 0.6880, 0.6895, 0.9320, 0.6950, 0.6970, 0.7030.

Support levels: 0.6820, 0.6790, 0.6770, 0.6750, 0.6720, 0.6685, 0.6600.

Trading tips

It is relevant to increase the volumes of short positions from the current level and open pending short positions from the levels of 0.6880, 0.6920 with the target at 0.6685 and stop loss 0.6990.

New Zealand Dollar vs US Dollar

Buy Sell Spread
0.68483 0.68457 26


Timeframe Weekly
Recommendations SELL
Entry Point 0.6853
Take Profit 0.6685
Stop Loss 0.6909
Support levels 0.6600, 0.6685, 0.6720, 0.6750, 0.6770, 0.6790, 0.6820, 0.6880, 0.6895, 0.9320, 0.6950, 0.6970, 0.7030

Alternative scenario

Recommendations SELL LIMIT
Entry Point 0.6880, 0.6920
Take Profit 0.6685
Stop Loss 0.6990
Support levels 0.6600, 0.6685, 0.6720, 0.6750, 0.6770, 0.6790, 0.6820, 0.6880, 0.6895, 0.9320, 0.6950, 0.6970, 0.7030

NZD/USD: correction continues

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