NZD continues to consolidate in the wide side channel against US dollar. Low volatility of the pair is explained by mixed data from the past trading week.
NZD remains under pressure in view of preservation of a mild monetary policy by RBNZ and due to comments about the positive effect of low national currency rate on inflation growth and higher economic growth of New Zealand.
At the end of the previous week releases from the USA were mixed. Key indexes remained in the red zone, and labor market indicators showed growth. Today the pair gained almost 100 points in view of trading tendencies and reached the upper border of the current consolidated movement.
A number of key releases from the USA are due in the middle of the current week including the data on the main indexes, the Fed’s decision on interest rates, and the press conference of the regulator.
Support and resistance
In the medium term side tendency is expected to be preserved and further move to the downward trend. Despite the weakness of USD, the sales of NZD will increase. US dollar may receive verbal support from the Fed in case of positive evaluation of monetary policy tightening and continuation of the current rate increase tendency. Technical indicators confirm the growth outlook: MACD indicates the preservation of the high volume of short positions, and Bollinger Bands are horizontal.
Support levels: 0.6895, 0.6880, 0.6820, 0.6790, 0.6750, 0.6700.
Resistance levels: 0.6920, 0.6945, 0.6970, 0.7000, 0.7050, 0.7130.
In this situation short positions should be opened from the current level with targets at 0.6790, 0.6700 and stop-loss at 0.6970.
New Zealand Dollar vs US Dollar
|Take Profit||0.6790, 0.6700|
|Support levels||0.6700, 0.6750, 0.6790, 0.6820, 0.6880, 0.6895, 0.6920, 0.6945, 0.6970, 0.7000, 0.7050, 0.7130|
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