Current trend
The pair NZD/USD is declining after Fed’s protocols. The "hawkish" mood of the American regulator was a surprise for market participants, as economic reports are clearly at variance with the Fed's position. The main signal for strengthening of the dollar was a statement about the firm intention of the Fed to raise the rate once more this year. In addition, the regulator said that the balance reduction will begin in October.
However, yesterday the Bureau of Statistics of New Zealand published a report on GDP. The published data fully corresponded to the forecast and were generally positive for NZD, but after a short correction the instrument again moved to a decline. Obviously, the Fed's "hawkish" position has a strong impact on the pair, which will likely continue to trade in a downtrend until the end of the week.
The key event that can have a strong impact on the dynamics of the pair will be the general parliamentary elections in New Zealand. The victory of the ruling National Party will support NZD. Today it is necessary to pay attention to the index of business activity in the United States.
Support and resistance
On the daily chart, the pair is at the top of the Bollinger Bands. The indicator is turning up, while the price range is expanding, indicating the preservation of the current trend. The MACD histogram is growing, forming a buy signal. Stochastic is in the middle zone and does not give clear signals.
Support levels: 0.7295, 0.7280, 0.7245, 0.7225, 0.7210.
Resistance levels: 0.7315, 0.7340, 0.7360, 0.7390.
Trading tips
Long positions can be opened above the level of 0.7320 with the target of 0.7400 and the stop loss at 0.7285. Term of realization: 1-2 days.
Short positions will be relevant below 0.7275 with the targets of 0.7245, 0.7210 and stop loss at 0.7295. Term of realization: 1-2 days.
The pair NZD/USD is declining after Fed’s protocols. The "hawkish" mood of the American regulator was a surprise for market participants, as economic reports are clearly at variance with the Fed's position. The main signal for strengthening of the dollar was a statement about the firm intention of the Fed to raise the rate once more this year. In addition, the regulator said that the balance reduction will begin in October.
However, yesterday the Bureau of Statistics of New Zealand published a report on GDP. The published data fully corresponded to the forecast and were generally positive for NZD, but after a short correction the instrument again moved to a decline. Obviously, the Fed's "hawkish" position has a strong impact on the pair, which will likely continue to trade in a downtrend until the end of the week.
The key event that can have a strong impact on the dynamics of the pair will be the general parliamentary elections in New Zealand. The victory of the ruling National Party will support NZD. Today it is necessary to pay attention to the index of business activity in the United States.
Support and resistance
On the daily chart, the pair is at the top of the Bollinger Bands. The indicator is turning up, while the price range is expanding, indicating the preservation of the current trend. The MACD histogram is growing, forming a buy signal. Stochastic is in the middle zone and does not give clear signals.
Support levels: 0.7295, 0.7280, 0.7245, 0.7225, 0.7210.
Resistance levels: 0.7315, 0.7340, 0.7360, 0.7390.
Trading tips
Long positions can be opened above the level of 0.7320 with the target of 0.7400 and the stop loss at 0.7285. Term of realization: 1-2 days.
Short positions will be relevant below 0.7275 with the targets of 0.7245, 0.7210 and stop loss at 0.7295. Term of realization: 1-2 days.