The pair NZD/USD spent the previous week in the narrow range between the key resistance level of 0.7300 and the upper border of the black D1 channel, but yesterday broke down from the range. Pressure on the pair is put by weak macroeconomic indicators of New Zealand, namely, dairy prices index, real estate, and raw materials.
Today the dynamics of the pair will be determined by indicators and news from the USA. The most important one will be the statement by FOMC head Janet Yellen (16:00 GMT+2). Her comments may lead to the growth of volatility in USD. FOMC economic review is due at 20:00 (GMT+2).
Support and resistance
Support levels: 0.7200, 0.7170, 0.7075.
Resistance levels: 0.7240, 07300, 0.7350, 0.7400, 0.7490.
Long positions may be opened at the market price with targets at 0.7300, 0.7350 and stop-loss at 0.7180.
Alternatively, sell positions may be opened below the level of 0.7200 with targets at 0.7170, 0.7100 and stop-loss at 0.7225.