Since the beginning of the week, the pair is developing an upward correction due to weak positions of the US currency before the publication of the Fed Meeting Minutes. In addition, investors are waiting for the release on consumer inflation in the US for September, which will once again assess the prospects for the planned increase in the interest rate at the end of the year.
There are no so much data from New Zealand. Yesterday, disappointing stats on the retail sales for September were published. The sales with electronic payments in September increased by 0.1% MoM while analysts forecasted +0.7% MoM. In annual terms, the growth in sales slowed from 4.4% to 2.9%.
Support and resistance
Bollinger Bands on the daily chart is decreasing. The price range, reacting to the growth of the instrument, got narrower. At the moment, the indicator shows the development of corrective growth in the short term.
The MACD indicator is forming a buy signal (the histogram should be located above the signal line).
Stochastics is near its minimum values and is not going to turn in the direction of growth.
Resistance levels: 0.7100, 0.7144, 0.7181, 0.7215.
Support levels: 0.7053, 0.7035, 0.7000.
To open long positions, you can rely on a breakout of the level of 0.7100. Take profit – 0.7181 or 0.7215. Stop loss is 0.7050. Term of realization: 2-3 days.
A sure breakdown of 0.7053 may signal a return of the downtrend. The closest goal in this case may be a psychological mark of 0.7000. Stop loss is 0.7080. Term of realization: 1-2 days.