New Zealand currency is trading within the narrow upward trend against the US dollar.
The downward corrections are becoming longer due to the closing of profitable positions at the key resistance levels. However, the pair cannot break the lower border of the upward trend due to the growth of demand on the lower border and significant weakness of US currency.
Yesterday the pair insignificantly decreased due to the lack of key releases in the USA. In the end of the week, the pair’s dynamics will depend on US Industrial production, employment market data, and indices.
Support and resistance
In the short term, the development of the upward momentum up to highs of the last August at the levels of 0.7335, 0.7370, and 0.7420 is expected, where the deeper correction and the possibility of the trend reversal are possible.
Despite the strong momentum, the upward trading mood of the investors is weakening at the key resistance levels, the most of which are concentrated above the level of 0.7370, which can reflect the formation of the wide sideways consolidation in case of further USD fall or the break of the trend while the investment attractiveness of the oversold USD is growing.
Technical indicators reflect the growth of the pair. However, on the 4-hour chart, MACD long positions volumes are rapidly falling, Bollinger Bands have restructured horizontally.
Support levels: 0.7275, 0.7250, 0.7200, 0.7180, 0.7130, 0.7110, 0.7050, 0.7010.
Resistance levels: 0.7295, 0.7310, 0.7335, 0.7370, 0.7450.
It is relevant to increase the volume of long positions at the current level with the target at 0.7370 and short stop loss at 0.7220.
New Zealand Dollar vs US Dollar
|Support levels||0.7010, 0.7050, 0.7110, 0.7130, 0.7180, 0.7200, 0.7250, 0.7275, 0.7295, 0.7310, 0.7335, 0.7370, 0.7450|
The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.