NZD/USD: instrument is correcting
Current trend
Last Friday, 19 January, the NZD showed a decline against the US Dollar. The American currency was growing amid almost empty economic calendar and despite uncertainty regarding federal government funding in the US.
The NZD, in its turn, got under some pressure after a publication of data on the Business PMI in New Zealand. In December, the index sharply fell from 57.7 to 51.2 points that was worse than expectations of analysts.
Today the pair is not showing any distinct dynamics as it waits for further market drivers. There are little macroeconomic publications today again. Attention should be paid to data on the Chicago Fed National Activity Index form the US.
Support and resistance
The Bollinger Bands on the daily chart is showing confident growth, while the price range is narrowing. The MACD turned down, having formed a sell signal. The Stochastic is falling, remaining in about the middle of its area.
The indicators recommend short positions.
Support levels: 0.7233, 0.7195, 0.7135, 0.7100.
Resistance levels: 0.7275, 0.7313, 0.7330.
Trading tips
Short positions can be opened after the breakdown of the level of 0.7233 with targets at 0.7150, 0.7135, 0.7100 and stop-loss at 0.7275. Validity – 2-3 days.
Long positions can be opened from the level of 0.7313 (with the appropriate indicators signals) with the target at 0.7400 and stop-loss at 0.7275. Validity – 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 0.7230
Take Profit 0.7150, 0.7135, 0.7100
Stop Loss 0.7275
Key Levels 0.7100, 0.7135, 0.7195, 0.7233, 0.7275, 0.7313, 0.7330
Alternative scenario
Recommendation BUY STOP
Entry Point 0.7320
Take Profit 0.7400
Stop Loss 0.7275
Key Levels 0.7100, 0.7135, 0.7195, 0.7233, 0.7275, 0.7313, 0.7330
Last Friday, 19 January, the NZD showed a decline against the US Dollar. The American currency was growing amid almost empty economic calendar and despite uncertainty regarding federal government funding in the US.
The NZD, in its turn, got under some pressure after a publication of data on the Business PMI in New Zealand. In December, the index sharply fell from 57.7 to 51.2 points that was worse than expectations of analysts.
Today the pair is not showing any distinct dynamics as it waits for further market drivers. There are little macroeconomic publications today again. Attention should be paid to data on the Chicago Fed National Activity Index form the US.
Support and resistance
The Bollinger Bands on the daily chart is showing confident growth, while the price range is narrowing. The MACD turned down, having formed a sell signal. The Stochastic is falling, remaining in about the middle of its area.
The indicators recommend short positions.
Support levels: 0.7233, 0.7195, 0.7135, 0.7100.
Resistance levels: 0.7275, 0.7313, 0.7330.
Trading tips
Short positions can be opened after the breakdown of the level of 0.7233 with targets at 0.7150, 0.7135, 0.7100 and stop-loss at 0.7275. Validity – 2-3 days.
Long positions can be opened from the level of 0.7313 (with the appropriate indicators signals) with the target at 0.7400 and stop-loss at 0.7275. Validity – 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 0.7230
Take Profit 0.7150, 0.7135, 0.7100
Stop Loss 0.7275
Key Levels 0.7100, 0.7135, 0.7195, 0.7233, 0.7275, 0.7313, 0.7330
Alternative scenario
Recommendation BUY STOP
Entry Point 0.7320
Take Profit 0.7400
Stop Loss 0.7275
Key Levels 0.7100, 0.7135, 0.7195, 0.7233, 0.7275, 0.7313, 0.7330