NZD is trading within the downward channel against USD due to the growth of demand on the US currency.
In addition, strong US employment market and key indices data affects the pair negatively. New Zealand dollar is losing its investment attractiveness after RBNZ officials’ commentaries upon the fact that the low rate of the national currency was favorable for the country’s economy.
This week US employment market data and Factory Orders release are worth traders’ attention. Today the head of Fed Janet Yellen will make a speech, in which she will evaluate the current economy state and the middle term development perspectives. In the middle of the trading week RBNZ interest rate decision will be published.
Support and resistance
The pair can consolidate in the downward trend with the target at 0.6680 in the middle term. The pair is ending the correction, and the downward movement can develop form the current levels of 0.6920, 0.6965.
The US employment rate is expected to grow, which can give a momentum to the further growth of USD. On the daily chart technical indicators confirms the downward forecast, MACD reflects the high volumes of short positions, Bollinger Bands are pointed downwards.
Resistance levels: 0.6920, 0.6965, 0.7010, 0.7050, 0.7200, 0.7250, 0.7370.
Support levels: 0.6880, 0.6820, 0.6770, 0.6680, 0.6575.
It’s better to increase the volume of short positions from the current level with the target at 0.6680 and stop loss at 0.7040.