NZD/USD: upward correction will be replaced by a new downward wave

Current trend

In the first days of July, NZD shows growth against the backdrop of falling demand for USD due to the consolidation of short positions at the strong support levels of 0.6685, 0.6700. At the end of June, the pair reached a new local minimum since mid-2016. Today, the pair reached the upper limit of the descending range and consolidated below it.

At the end of the current trading week, there will be published the data on the unemployment rate and Nonfarm payrolls in the US.

Support and resistance

In the medium term, the downtrend will continue, as technically the pair has overcome all the most important marks in the second half of June. After some decline in demand for USD, the interest in it will start to grow again, and the sales of NZD will start. There is a possibility of forming a longer correction to the key resistance levels of 0.6790, 0.6820, but in order to overcome these levels, either strong statistics from New Zealand or significant negative indicators from the USA are needed.

Indicators on the D1 chart and above confirm the forecast of further decline: MACD shows the preservation of the high volume of short positions, and Bollinger Bands are directed downwards.

Support levels: 0.6735, 0.6720, 0.6685, 06600, 0.6530, 0.6500.

Resistance levels: 0.6750, 0.6770, 0.6790, 0.6820, 0.5850, 0.6880, 0.6920.

Trading tips

In this situation, short positions may be opened from the current level with the target at 0.6630 and stop-loss at 0.6870.

New Zealand Dollar vs US Dollar

Buy Sell Spread
0.67678 0.67652 26


Timeframe Day’s Range
Recommendations SELL
Entry Point 0.6765
Take Profit 0.6630
Stop Loss 0.6870
Support levels 0.6500, 0.6530, 06600, 0.6685, 0.6720, 0.6735, 0.6750, 0.6770, 0.6790, 0.6820, 0.5850, 0.6880, 0.6920

NZD/USD: upward correction will be replaced by a new downward wave

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