Current trend
Yesterday, the NZD/USD pair fell due to US-China disagreements. During the last APEC summit in Papua New Guinea, Mike Pence said that the US could double the duties on Chinese goods and would not change course until China changes its ways. Chinese President Xi Jinping replied that protectionism in the modern world is short-sighted and doomed to failure. As a result, because of the dispute, the APEC leaders did not sign the final summit declaration. Thus, investors' hopes for Trump and Xi Jinping to conclude an agreement within the G20 meeting disappeared. The US administration launched a list of requirements of 142 points towards the PRC, and last week, China presented a list of possible concessions, which, however, did not satisfy the US. Now, further escalation of the conflict seems more likely than the reconciliation of the parties.
Today the instrument grows. USD is under pressure from a decline in the US stock market. On Thursday, it will be closed on the occasion of Thanksgiving Day.
On Tuesday, October US construction market data will be published. Building Permits is expected to decrease from 1.270 million to 1.260 million, and Housing Starts may increase from 1.201 million to 1.225 million.
Support and resistance
On the 4-hour chart, the instrument grows towards the upper border of Bollinger bands, the price range is narrowed. MACD histogram is in the positive region, keeping the buy signal.
Resistance levels: 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085.
Support levels: 0.6837, 0.6800, 0.6767, 0.6745, 0.6719, 0.6700.
Trading tips
Long positions can be opened from the current level with the target at 0.6922 and stop loss 0.6837. Implementation period: 1–3 days.
Short positions can be opened from 0.6700 with the target at 0.6610 and stop loss 0.6730. Implementation period: 2–5 days.
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 0.6861
Take Profit 0.6922
Stop Loss 0.6837
Key Levels 0.6700, 0.6719, 0.6745, 0.6767, 0.6800, 0.6837, 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6700
Take Profit 0.6610
Stop Loss 0.6730
Key Levels 0.6700, 0.6719, 0.6745, 0.6767, 0.6800, 0.6837, 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085
Yesterday, the NZD/USD pair fell due to US-China disagreements. During the last APEC summit in Papua New Guinea, Mike Pence said that the US could double the duties on Chinese goods and would not change course until China changes its ways. Chinese President Xi Jinping replied that protectionism in the modern world is short-sighted and doomed to failure. As a result, because of the dispute, the APEC leaders did not sign the final summit declaration. Thus, investors' hopes for Trump and Xi Jinping to conclude an agreement within the G20 meeting disappeared. The US administration launched a list of requirements of 142 points towards the PRC, and last week, China presented a list of possible concessions, which, however, did not satisfy the US. Now, further escalation of the conflict seems more likely than the reconciliation of the parties.
Today the instrument grows. USD is under pressure from a decline in the US stock market. On Thursday, it will be closed on the occasion of Thanksgiving Day.
On Tuesday, October US construction market data will be published. Building Permits is expected to decrease from 1.270 million to 1.260 million, and Housing Starts may increase from 1.201 million to 1.225 million.
Support and resistance
On the 4-hour chart, the instrument grows towards the upper border of Bollinger bands, the price range is narrowed. MACD histogram is in the positive region, keeping the buy signal.
Resistance levels: 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085.
Support levels: 0.6837, 0.6800, 0.6767, 0.6745, 0.6719, 0.6700.
Trading tips
Long positions can be opened from the current level with the target at 0.6922 and stop loss 0.6837. Implementation period: 1–3 days.
Short positions can be opened from 0.6700 with the target at 0.6610 and stop loss 0.6730. Implementation period: 2–5 days.
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 0.6861
Take Profit 0.6922
Stop Loss 0.6837
Key Levels 0.6700, 0.6719, 0.6745, 0.6767, 0.6800, 0.6837, 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6700
Take Profit 0.6610
Stop Loss 0.6730
Key Levels 0.6700, 0.6719, 0.6745, 0.6767, 0.6800, 0.6837, 0.6882, 0.6922, 0.7020, 0.7040, 0.7065, 0.7085