NZD/USD: New Zealand dollar is falling
Current trend
NZD fall against the US dollar, balancing the growth of the end of last week when the instrument stepped off the December lows.
The investors are still focused on the US-China trade relations. On Tuesday, the concrete steps of the parties to ease tension were revealed. Since July 1, China is going to rapidly reduce import fees on American cars and spare parts. Taxes for cars will be reduced from 25% to 15%, and for spare parts – from 10% to 6%. America, according to The Wall Street Journal, is ready to cancel restrictions on the supply of ZTE smartphones but the company will probably have to change the management structure and pay a number of fines.
On Wednesday, investors are waiting for FOMC Minutes release. The report can show the further actions of the regulator. Traders expect if there will be three or four, as the head of the Fed, Jerome Powell, earlier hinted.
Support and resistance
On the daily chart, Bollinger bands decrease. The price range narrows, reflecting the flat trading in the short term. MACD grows, keeping a weak buy signal (the histogram is above the signal line). The indicator reacts slowly to the “bearish” dynamics. Stochastic reversed downwards, but a correctional fall in the short term is possible.
It is better to wait for the clear signal.
Resistance levels: 0.6935, 0.6973, 0.7000, 0.7051.
Support levels: 0.6880, 0.6850, 0.6800.
Trading tips
Long positions can be opened after the rebound from the level of 0.6880 and breakout of 0.6900 with the targets at 0.6973 or 0.7000 and stop loss 0.6860.
Short positions can be opened after the breakdown of the level of 0.6880 with the targets at 0.6830-0.6800 and stop loss 0.6920.
Implementation period: 2–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.6910
Take Profit 0.6973, 0.7000
Stop Loss 0.6860
Key Levels 0.6800, 0.6850, 0.6880, 0.6935, 0.6973, 0.7000, 0.7051
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6870
Take Profit 0.6830, 0.6800
Stop Loss 0.6920
Key Levels 0.6800, 0.6850, 0.6880, 0.6935, 0.6973, 0.7000, 0.7051
NZD fall against the US dollar, balancing the growth of the end of last week when the instrument stepped off the December lows.
The investors are still focused on the US-China trade relations. On Tuesday, the concrete steps of the parties to ease tension were revealed. Since July 1, China is going to rapidly reduce import fees on American cars and spare parts. Taxes for cars will be reduced from 25% to 15%, and for spare parts – from 10% to 6%. America, according to The Wall Street Journal, is ready to cancel restrictions on the supply of ZTE smartphones but the company will probably have to change the management structure and pay a number of fines.
On Wednesday, investors are waiting for FOMC Minutes release. The report can show the further actions of the regulator. Traders expect if there will be three or four, as the head of the Fed, Jerome Powell, earlier hinted.
Support and resistance
On the daily chart, Bollinger bands decrease. The price range narrows, reflecting the flat trading in the short term. MACD grows, keeping a weak buy signal (the histogram is above the signal line). The indicator reacts slowly to the “bearish” dynamics. Stochastic reversed downwards, but a correctional fall in the short term is possible.
It is better to wait for the clear signal.
Resistance levels: 0.6935, 0.6973, 0.7000, 0.7051.
Support levels: 0.6880, 0.6850, 0.6800.
Trading tips
Long positions can be opened after the rebound from the level of 0.6880 and breakout of 0.6900 with the targets at 0.6973 or 0.7000 and stop loss 0.6860.
Short positions can be opened after the breakdown of the level of 0.6880 with the targets at 0.6830-0.6800 and stop loss 0.6920.
Implementation period: 2–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.6910
Take Profit 0.6973, 0.7000
Stop Loss 0.6860
Key Levels 0.6800, 0.6850, 0.6880, 0.6935, 0.6973, 0.7000, 0.7051
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6870
Take Profit 0.6830, 0.6800
Stop Loss 0.6920
Key Levels 0.6800, 0.6850, 0.6880, 0.6935, 0.6973, 0.7000, 0.7051