NZD/USD: the pair’s dynamics is flat
Current trend
During the trading session on Thursday, September, 28, NZD grew against USD, despite the renewing of the local minimum since September, 5. The US dollar is under pressure due to the technical correction in the end of the week and the controversial information upon the tax reformation, which details were disclosed yesterday.
The investors were slightly disappointed with the reformation, as the shown plan almost didn’t contain any new details and didn’t explain how the tax income would be reduced without significant growth of the budget burden.
During the morning session the instrument is decreasing, and the traders are waiting for the new drivers, and there will be plenty of them in the last trading day of the week. In particular, the Personal Consumption statistics is due at 14:30 (GMT+2) in the USA.
Support and resistance
On the daily chart Bollinger Bands’ dynamics is flat. The price range is widening. The indicator’s readings don’t contradict with the correctional dynamics development within the channel trading strategy.
MACD is going down, keeping a weak sell signal (the histogram is below the signal line). It’s better to wait until the situation is clear, as the current readings are uninformative.
Stochastic is trying to reverse into growth, which reflects the possibility of the correctional upward dynamics development in the short term.
Resistance levels: 0.7237, 0.7262, 0.7297.
Support levels: 0.7215, 0.7181, 0.7165, 0.7130.
Trading tips
Long positions can be opened after the breakout the level of 0.7237. Take profit is 0.7297. Stop loss is 0.7200. Implementation period: 2 days.
The return of the “bearish” trend and the steady breakdown of the level of 0.7181 can be a signal to open short positions with the targets at 0.7130–0.7100. Stop loss is 0.7220. Implementation period: 2–3 days.
During the trading session on Thursday, September, 28, NZD grew against USD, despite the renewing of the local minimum since September, 5. The US dollar is under pressure due to the technical correction in the end of the week and the controversial information upon the tax reformation, which details were disclosed yesterday.
The investors were slightly disappointed with the reformation, as the shown plan almost didn’t contain any new details and didn’t explain how the tax income would be reduced without significant growth of the budget burden.
During the morning session the instrument is decreasing, and the traders are waiting for the new drivers, and there will be plenty of them in the last trading day of the week. In particular, the Personal Consumption statistics is due at 14:30 (GMT+2) in the USA.
Support and resistance
On the daily chart Bollinger Bands’ dynamics is flat. The price range is widening. The indicator’s readings don’t contradict with the correctional dynamics development within the channel trading strategy.
MACD is going down, keeping a weak sell signal (the histogram is below the signal line). It’s better to wait until the situation is clear, as the current readings are uninformative.
Stochastic is trying to reverse into growth, which reflects the possibility of the correctional upward dynamics development in the short term.
Resistance levels: 0.7237, 0.7262, 0.7297.
Support levels: 0.7215, 0.7181, 0.7165, 0.7130.
Trading tips
Long positions can be opened after the breakout the level of 0.7237. Take profit is 0.7297. Stop loss is 0.7200. Implementation period: 2 days.
The return of the “bearish” trend and the steady breakdown of the level of 0.7181 can be a signal to open short positions with the targets at 0.7130–0.7100. Stop loss is 0.7220. Implementation period: 2–3 days.