Current trend
This week the NZD grew against the USD due to the positive data from the World Dairy Market. On Tuesday the milk price index reached the maximum from the December, 2016. Yesterday the New Zealand Consumer Price Index reached the 6-year maximum, which also supported the NZD.
In addition the USA employment market and the Philadelphia Fed Manufacturing Survey not only were negative, but also significantly worse than expected. As a result the pair retuned to the line of the almost 2-year trend and consolidated above the key level of 0.7000. Treasury Sec Mnuchin Speech, who noted the soon Trump’s tax reformation strengthened the USD, as expected. However the level of 0.7000 was strong enough and the pair couldn’t cross it.
Today there is no news from the New Zealand to be published, so the traders’ attention is drawn to the USA issues: FOMC Member Kashkari Speech, Markit Services PMI (expected to be slightly positive, Existing Home Sales (expected to be positive) and Baker Hughes US Oil Rig Count.
Support and resistance
Support levels: 0.7000, 0.6910, 0.6865, 0.6800.
Resistance levels: 0.7075, 0.7170, 0.7240.
Trading scenario
Open long positions at the current price with the target at 0.7075, 0.7170, stop loss is at 0.6980.
Sell the pair at the level of 0.7000 with the target at 0.6910, 0.6865, stop loss is at 0.7100.
This week the NZD grew against the USD due to the positive data from the World Dairy Market. On Tuesday the milk price index reached the maximum from the December, 2016. Yesterday the New Zealand Consumer Price Index reached the 6-year maximum, which also supported the NZD.
In addition the USA employment market and the Philadelphia Fed Manufacturing Survey not only were negative, but also significantly worse than expected. As a result the pair retuned to the line of the almost 2-year trend and consolidated above the key level of 0.7000. Treasury Sec Mnuchin Speech, who noted the soon Trump’s tax reformation strengthened the USD, as expected. However the level of 0.7000 was strong enough and the pair couldn’t cross it.
Today there is no news from the New Zealand to be published, so the traders’ attention is drawn to the USA issues: FOMC Member Kashkari Speech, Markit Services PMI (expected to be slightly positive, Existing Home Sales (expected to be positive) and Baker Hughes US Oil Rig Count.
Support and resistance
Support levels: 0.7000, 0.6910, 0.6865, 0.6800.
Resistance levels: 0.7075, 0.7170, 0.7240.
Trading scenario
Open long positions at the current price with the target at 0.7075, 0.7170, stop loss is at 0.6980.
Sell the pair at the level of 0.7000 with the target at 0.6910, 0.6865, stop loss is at 0.7100.