Current trend
This week, the instrument demonstrates mixed dynamics, consolidating near a strong support level of 0.6915.
The minutes of the Fed meeting published yesterday testifies to the intention of the regulator to raise rates in June. At the same time, the number of rate hikes was not reflected in the text of the minutes, so the market reacted to the key event of the week moderately.
Today, the pair slightly strengthened against the backdrop of strong reports on New Zealand's foreign trade activities. Despite strong demand for exports, NZD remains weak and further "bearish" trend is the most likely scenario in the short and medium term.
Today, market participants will monitor the release of data on the labor market (14:30 GMT+2) and real estate (16:00 GMT+2) in the US. In addition, it is necessary to pay attention to the Fed officials' statements, which are scheduled at 09:00, 16:35 and 20:00 (GMT+2). Investors are interested in the information on the number of rate increases this year.
Support and resistance
On H4 chart the instrument is testing a strong support level of 0.6920. Bollinger bands are directed sideways, and the price range remains limited, indicating a further correction. MACD histogram is in the neutral zone, the signal for entering the market is not formed. Stochastic is approaching the oversold area; a sell signal can be formed during the day.
Support levels: 0.6776, 0.6806, 0.6847, 0.6879, 0.6902, 0.6920.
Resistance levels: 0.6938, 0.6963, 0.6994, 0.7025, 0.7053, 0.7097, 0.7127.
Trading tips
Short positions should be opened below the level of 0.6880 with targets at 0.6845, 0.6800 and stop-loss at 0.6900. Implementation period: 1 day.
Long positions may be opened from the level of 0.6965 with target at 0.7025 and stop-loss at 0.6900. Implementation period: 1-2 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 0.6875
Take Profit 0.6845, 0.6800
Stop Loss 0.6900
Key Levels 0.6776, 0.6806, 0.6847, 0.6879, 0.6902, 0.6920, 0.6938, 0.6963, 0.6994, 0.7025, 0.7053, 0.7097, 0.7127
Alternative scenario
Recommendation BUY STOP
Entry Point 0.6965
Take Profit 0.7025
Stop Loss 0.6900
Key Levels 0.6776, 0.6806, 0.6847, 0.6879, 0.6902, 0.6920, 0.6938, 0.6963, 0.6994, 0.7025, 0.7053, 0.7097, 0.7127
This week, the instrument demonstrates mixed dynamics, consolidating near a strong support level of 0.6915.
The minutes of the Fed meeting published yesterday testifies to the intention of the regulator to raise rates in June. At the same time, the number of rate hikes was not reflected in the text of the minutes, so the market reacted to the key event of the week moderately.
Today, the pair slightly strengthened against the backdrop of strong reports on New Zealand's foreign trade activities. Despite strong demand for exports, NZD remains weak and further "bearish" trend is the most likely scenario in the short and medium term.
Today, market participants will monitor the release of data on the labor market (14:30 GMT+2) and real estate (16:00 GMT+2) in the US. In addition, it is necessary to pay attention to the Fed officials' statements, which are scheduled at 09:00, 16:35 and 20:00 (GMT+2). Investors are interested in the information on the number of rate increases this year.
Support and resistance
On H4 chart the instrument is testing a strong support level of 0.6920. Bollinger bands are directed sideways, and the price range remains limited, indicating a further correction. MACD histogram is in the neutral zone, the signal for entering the market is not formed. Stochastic is approaching the oversold area; a sell signal can be formed during the day.
Support levels: 0.6776, 0.6806, 0.6847, 0.6879, 0.6902, 0.6920.
Resistance levels: 0.6938, 0.6963, 0.6994, 0.7025, 0.7053, 0.7097, 0.7127.
Trading tips
Short positions should be opened below the level of 0.6880 with targets at 0.6845, 0.6800 and stop-loss at 0.6900. Implementation period: 1 day.
Long positions may be opened from the level of 0.6965 with target at 0.7025 and stop-loss at 0.6900. Implementation period: 1-2 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 0.6875
Take Profit 0.6845, 0.6800
Stop Loss 0.6900
Key Levels 0.6776, 0.6806, 0.6847, 0.6879, 0.6902, 0.6920, 0.6938, 0.6963, 0.6994, 0.7025, 0.7053, 0.7097, 0.7127
Alternative scenario
Recommendation BUY STOP
Entry Point 0.6965
Take Profit 0.7025
Stop Loss 0.6900
Key Levels 0.6776, 0.6806, 0.6847, 0.6879, 0.6902, 0.6920, 0.6938, 0.6963, 0.6994, 0.7025, 0.7053, 0.7097, 0.7127