NZD/USD - LONG after breaking the level of 0.6700
Fundamental Analysis
GlobalDairy Trade Price Index is demonstrating a downtrend since the beginning of March
New Zealand's inflation for the first quarter decreased and settled at +1.5% (YoY) compared to the +1.9% in the previous year
Consumer price index QoQ was released at +0.1% instead of the forecasted +0.3%
The slowing down of the inflation is due to the situation with petrol prices (down 7%) and international airfares (down 12%)
The US economy is still demonstrating signs of growth, which is why it is understandable to see the New Zealand Dollar weakening against the Greenback
Technical Analysis
1DTF shows that the pair tested the local minimum at 0.65817 and started bouncing back
NZD/USD broke the 23.6% Fibo correction level at 0.66646
Williams %R also shows the pair returning from the oversold area
A slight divergence on the MACD is warning the bears about the possibility of a reversal
Summary: We recommend for conservative traders to wait till the pair breaks the level of 0.6700 and go LONG
If you intend to hold long positions till the end of the week, we strongly recommend that you pay attention to the NFP data release on Friday due to high volatility
GlobalDairy Trade Price Index is demonstrating a downtrend since the beginning of March
New Zealand's inflation for the first quarter decreased and settled at +1.5% (YoY) compared to the +1.9% in the previous year
Consumer price index QoQ was released at +0.1% instead of the forecasted +0.3%
The slowing down of the inflation is due to the situation with petrol prices (down 7%) and international airfares (down 12%)
The US economy is still demonstrating signs of growth, which is why it is understandable to see the New Zealand Dollar weakening against the Greenback
Technical Analysis
1DTF shows that the pair tested the local minimum at 0.65817 and started bouncing back
NZD/USD broke the 23.6% Fibo correction level at 0.66646
Williams %R also shows the pair returning from the oversold area
A slight divergence on the MACD is warning the bears about the possibility of a reversal
Summary: We recommend for conservative traders to wait till the pair breaks the level of 0.6700 and go LONG
If you intend to hold long positions till the end of the week, we strongly recommend that you pay attention to the NFP data release on Friday due to high volatility