The NZD/USD pair has been trading within the narrowing sideways range for the past 5 months. It is worth noting that RBNZ keeps the interest rate low which in future will put pressure on the New Zealand currency.
At the end of the week, traders should pay attention to the data on the US labor market, namely the unemployment rate and Non-Farm Payrolls.
Support and resistance
In the medium term, the pair would probably continue to decline to the lower boundary of the sideways channel. Technical indicators confirm the consolidation of a downward trend: the volumes of short positions of MACD are growing, and the bottom line of the Bollinger bands on the weekly chart (0.6840) acts as the next target level. However, at the interval of 100 points downwards the three strong support levels are lined up, and it will not be easy to break them down. There’s a possibility of a rebound and upward correction from one of these levels.
Support levels: 0.6975, 0.6945, 0.6890, 0.6865, 0.6840, 0.6730, 0.6700.
Resistance levels: 0.7010, 0.7065, 0.7110, 0.7150, 0.7240, 0.7370.
Short positions can be opened at the current price with the target of 0.6840, in the medium term it would be 0.6700, and with a short stop-loss at 0.7040.
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