NZD/USD: the downward dynamics remains
Current trend
New Zealand dollar continues to decrease against the US currency within the limits of the narrow downward channel. The pair is falling in view of growing investors interest to USD and monetary policy decisions of RBNZ. Reserve Bank of New Zealand kept the stimulating interest rate without changes which led to decreasing demand in the national currency. US dollar, on the contrary, is gaining ground in view of strong macroeconomic data an growing investors interest. Investors expect FOMC to make a decision on speeding up the cancellation of the stimulation program that may considerably increase the rate of the American currency. In the current week the volatility of the pair was very low due to the absence of important releases from the USA. The main data that can give the pair dynamics (labor market releases, retail sales, and main indexes) will be published in the end of the next week.
Support and resistance
Today the pair continued to decrease and in the short term may drop to the local minimum of early March (0.6890). It is expected that tougher monetary policy of FOMC will give US dollar additional support and allow the pair to break through strong support levels of 0.6890, 0.6865, 0.6840 and consolidate in the downward trend with short term targets at 0.6785, 0.6700, 0.6630. Technical indicators support these expectations: MACD indicates the growing volume of short positions, and the lower line of Bollinger Bands in the weekly chart shows the current target and strong support at 0.6785.
Support levels: 0.6915, 0.6890, 0.6865, 0.6840, 0.6785, 0.6700, 0.6630.
Resistance levels: 0.6945, 0.6975, 0.7010, 0.7065, 0.7110, 0.7150, 0.7240, 0.7370.
Trading tips
In the current situation short positions with targets at 0.6865, 0.6785 and 0.6630 in the long term will be relevant. Stop-loss should be placed at 0.6990.
New Zealand dollar continues to decrease against the US currency within the limits of the narrow downward channel. The pair is falling in view of growing investors interest to USD and monetary policy decisions of RBNZ. Reserve Bank of New Zealand kept the stimulating interest rate without changes which led to decreasing demand in the national currency. US dollar, on the contrary, is gaining ground in view of strong macroeconomic data an growing investors interest. Investors expect FOMC to make a decision on speeding up the cancellation of the stimulation program that may considerably increase the rate of the American currency. In the current week the volatility of the pair was very low due to the absence of important releases from the USA. The main data that can give the pair dynamics (labor market releases, retail sales, and main indexes) will be published in the end of the next week.
Support and resistance
Today the pair continued to decrease and in the short term may drop to the local minimum of early March (0.6890). It is expected that tougher monetary policy of FOMC will give US dollar additional support and allow the pair to break through strong support levels of 0.6890, 0.6865, 0.6840 and consolidate in the downward trend with short term targets at 0.6785, 0.6700, 0.6630. Technical indicators support these expectations: MACD indicates the growing volume of short positions, and the lower line of Bollinger Bands in the weekly chart shows the current target and strong support at 0.6785.
Support levels: 0.6915, 0.6890, 0.6865, 0.6840, 0.6785, 0.6700, 0.6630.
Resistance levels: 0.6945, 0.6975, 0.7010, 0.7065, 0.7110, 0.7150, 0.7240, 0.7370.
Trading tips
In the current situation short positions with targets at 0.6865, 0.6785 and 0.6630 in the long term will be relevant. Stop-loss should be placed at 0.6990.