NZD continues to trade in the mid-term downward channel.
At the end of August, the pair made several unsuccessful attempts to overcome the key resistance level of 0.6725, but, moving away from it, quickly went down. The main catalyst for the movement was the recovery of USD amid favorable statistics on key sectors of the US economy – the labor market, GDP, and major indices.
No important releases are scheduled for today. the United States is preparing to celebrate Labor Day.
Support and resistance
In the future, the gradual recovery of the US currency is expected, due to which the pair will continue to decline within the downward trend. One may expect the price to fall to the levels of 0.6545, 0.6510, 0.6490, and even to 0.6430 in the long term. Next week, there will be a number of key releases from the US, including Nonfarm Payrolls and the unemployment rate. Consensus forecasts indicate a positive growth in indicators, so a rapid fall of the pair is expected.
Technical indicators confirm the outlook: on H4 chart and above, MACD indicates the growth of the volume of short positions, and Bollinger Bands are directed downwards.
Support levels: 0.6610, 0.6575, 0.6545, 0.6510, 0.6490, 0.6430.
Resistance levels: 0.6680, 0.6690, 0.6710, 0.6725, 0.6770, 0.6830.
In the medium term, one may open short positions from the current level with targets at 0.6545, 0.6510, 0.6490, 0.6430 and stop loss at 0.6700.
New Zealand Dollar vs US Dollar
|Take Profit||0.6545, 0.6510, 0.6490, 0.6430|
|Support levels||0.6430, 0.6490, 0.6545, 0.6575, 0.6610, 0.6680, 0.6690, 0.6710, 0.6725, 0.6830,|
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