NZD/USD: new highs are only matter of time

Current trend

NZD was rapidly declining against USD in early February after a protracted growth in January.

The attractiveness of the oversold dollar has already begun to be regarded as a downward trend, but the pair turned up from the key support level of 0.7180. The upward momentum was strengthened amid comments on the concern of the White House about the growth of the budget deficit. Weak data on US retail sales had additional pressure on the pair. In view of this, USD lost over 150 points against the majors. NZD is not an exception: the pair “took off” and almost reached the local maximum mark of the end of January (0.7420, 0.7435).

Today and tomorrow the US will release a number of data that can significantly affect the dynamics of the pair; data on industrial production, labor market, and main indices.

Support and resistance

In the short term, a slight downward correction is expected, after which the pair will go further and the testing of the local maximum at 0.7435 is high today. The pair can show a deeper correction if the mark is not overcome by the first approach. The trend remains ascending, and taking local highs is a matter of time. In the medium term, the pair is expected to grow to 0.7575, 0.7750.

Technical indicators confirm the forecast, MACD indicates a sharp increase in the volume of long positions, Bollinger Bands reversed up again.

Support levels: 0.7370, 0.7335, 0.7310, 0.7275, 0.7250, 0.7200, 0.7180, 0.7130, 0.7100.

Resistance levels: 0.7400, 0.7420, 0.7435, 0.7450, 0.7575, 0.7750.

Trading tips

In this situation, long positions may be opened from the current level; pending orders can be put from the levels of 0.7370, 0.7335 with the target at 0.7575 and the stop-loss at 0.7300.

New Zealand Dollar vs US Dollar

Buy Sell Spread
0.73805 0.73779 26

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 0.7395
Take Profit 0.7575
Stop Loss 0.7300
Support levels 0.7100, 0.7130, 0.7180, 0.7200, 0.7250, 0.7310, 0.7335, 0.7370, 0.7400, 0.7420, 0.7435, 0.7450, 0.7575, 0.7750

Alternative scenario

Recommendations BUY LIMIT
Entry Point 0.7370, 0.7335
Take Profit 0.7575
Stop Loss 0.7300
Support levels 0.7100, 0.7130, 0.7180, 0.7200, 0.7250, 0.7310, 0.7335, 0.7370, 0.7400, 0.7420, 0.7435, 0.7450, 0.7575, 0.7750

NZD/USD: new highs are only matter of time

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