NZD/USD: the pair is showing mixed dynamics
Current trend
NZD grew against USD on Thursday, updating the local maximum of May 8. However, NZD failed to stay on the occupied positions, and by the time of the close of the afternoon session, it had lost almost all its advantage.
Optimistic macroeconomic statistics from the US, which were much better than expectations, contributed to the correctional sentiment on the instrument. In April, Personal Income increased from 0.2% to 0.3%. Personal Spending instead of decrease also increased from 0.5% to 0.6%. The indicator is a significant part of the US GDP and its growth positively affects economy.
On Friday, investors are waiting for US employment market data. The Unemployment Rate is expected to stay at the level of 3.9%, and Nonfarm Payrolls will grow from 164K to 188K, which can strengthen USD. ADP Employment Change, considered being ahead of the federal one, increased from 163K to 178K.
Support and resistance
Bollinger Bands are reversing upwards on the D1 chart. The price range is widening but does not conform to the development of the "bullish" trend yet.
MACD indicator is growing keeping a stable buy signal (the histogram is above the signal line).
Stochastic is also growing, but is approaching its maximum marks, which indicates the risks associated with the overbought NZD.
The current showings of the indicators do not contradict the further development of the "bullish" trend.
Resistance levels: 0.7000, 0.7022, 0.7051, 0.7090.
Support levels: 0.6973, 0.6935, 0.6880, 0.6850.
Trading tips
To open long positions, one can rely on the breakout of 0.7000 or 0.7022 marks. Take-profit — 0.7070 or 0.7090, 0.7110. Stop-loss — 0.6970 or 0.6990.
The breakdown of the level of 0.6973 may serve as a signal for new sales with the target at 0.6920, 0.6900. Stop-loss – 0.7000.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7010, 0.7030
Take Profit 0.7070, 0.7090, 0.7110
Stop Loss 0.6970, 0.6990
Key Levels 0.6850, 0.6880, 0.6935, 0.6973, 0.7000, 0.7022, 0.7051, 0.7090
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6970
Take Profit 0.6920, 0.6900
Stop Loss 0.7000
Key Levels 0.6850, 0.6880, 0.6935, 0.6973, 0.7000, 0.7022, 0.7051, 0.7090
NZD grew against USD on Thursday, updating the local maximum of May 8. However, NZD failed to stay on the occupied positions, and by the time of the close of the afternoon session, it had lost almost all its advantage.
Optimistic macroeconomic statistics from the US, which were much better than expectations, contributed to the correctional sentiment on the instrument. In April, Personal Income increased from 0.2% to 0.3%. Personal Spending instead of decrease also increased from 0.5% to 0.6%. The indicator is a significant part of the US GDP and its growth positively affects economy.
On Friday, investors are waiting for US employment market data. The Unemployment Rate is expected to stay at the level of 3.9%, and Nonfarm Payrolls will grow from 164K to 188K, which can strengthen USD. ADP Employment Change, considered being ahead of the federal one, increased from 163K to 178K.
Support and resistance
Bollinger Bands are reversing upwards on the D1 chart. The price range is widening but does not conform to the development of the "bullish" trend yet.
MACD indicator is growing keeping a stable buy signal (the histogram is above the signal line).
Stochastic is also growing, but is approaching its maximum marks, which indicates the risks associated with the overbought NZD.
The current showings of the indicators do not contradict the further development of the "bullish" trend.
Resistance levels: 0.7000, 0.7022, 0.7051, 0.7090.
Support levels: 0.6973, 0.6935, 0.6880, 0.6850.
Trading tips
To open long positions, one can rely on the breakout of 0.7000 or 0.7022 marks. Take-profit — 0.7070 or 0.7090, 0.7110. Stop-loss — 0.6970 or 0.6990.
The breakdown of the level of 0.6973 may serve as a signal for new sales with the target at 0.6920, 0.6900. Stop-loss – 0.7000.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7010, 0.7030
Take Profit 0.7070, 0.7090, 0.7110
Stop Loss 0.6970, 0.6990
Key Levels 0.6850, 0.6880, 0.6935, 0.6973, 0.7000, 0.7022, 0.7051, 0.7090
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6970
Take Profit 0.6920, 0.6900
Stop Loss 0.7000
Key Levels 0.6850, 0.6880, 0.6935, 0.6973, 0.7000, 0.7022, 0.7051, 0.7090