NZD/USD: downward trend strengthens

Current trend

NZD against USD retains a medium-term downward trend.

In the second half of February, the pair seriously dropped by more than 250 points and reached a local minimum of the last three months of 0.7180. In early March, the instrument quickly strengthened due to the release of favorable statistics on the labor market in New Zealand and a negative fundamental background for the United States. On Thursday, weak data on the labor market, major indices and construction spending in the US was published.

Today, the pair declined and now tends to local lows (0.7200, 0.7180). The economic calendar is empty, one should pay attention only to data on the consumer price index in the United States.

Support and resistance

In the short term, the downward momentum will increase in view of growing demand for the USD. The probability of the pair returning to the local minimum of 0.7180 is high and after taking it in the medium term, the road to new marks (0.7130, 0.7050, 0.7010) will open.

Technical indicators on H4 chart retain the signal of the pair declinig: the volume of short positions is increasing, and Bollinger Bands are directed downward.

Support levels: 0.7200, 0.7180, 0.7130, 0.7110, 0.7050, 0.7010, 0.6970.

Resistance levels: 0.7250, 0.7275, 0.7295, 0.7310, 0.7335, 0.7370, 0.7400, 0.7420, 0.7435.

Trading tips

In this situation, short positions may be opened from the current level with targets at 0.7180, 0.7010 and stop-loss at 0.7300.

New Zealand Dollar vs US Dollar

Buy Sell Spread
0.72413 0.72387 26

Scenario

Timeframe Weekly
Recommendations SELL
Entry Point 0.7236
Take Profit 0.7180, 0.7010
Stop Loss 0.7300
Support levels 0.6970, 0.7010, 0.7050, 0.7110, 0.7130, 0.7180, 0.7200, 0.7250, 0.7275, 0.7295, 0.7310, 0.7335, 0.7370, 0.7400, 0.7420, 0.7435

NZD/USD: downward trend strengthens

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