Current trend
Yesterday, NZD grew moderately against USD and approached the highs renewed on July 26.
USD is declining before Fed Interest Rate Decision on Wednesday. The rate is expected to stay at the level of 2.0%, and there no announcement of new economic forecasts is expected. In addition, the currency is under pressure due to instability in the US Administration. President Donald Trump said that he admits the possibility of suspending the work of the Government if Democratic Party votes against the draft law on the borders protection, which includes the building a wall on the border with Mexico, in Congress.
On Tuesday, the releases of June Personal Consumption Expenditures (remain at the same level of 0.4%) and Personal income (will grow from 0.2% to 0.4%) is forecasted, which can support the instrument.
Support and resistance
On the daily chart, Bollinger bands are moving flat. The price range is slightly widening from above, limiting the development of the "bullish" dynamics. MACD grows, keeping a moderate buy signal (the histogram is above the signal line). Stochastic reverses upwards, reflecting the emergence of "bullish" potential in the short term.
It is better to open long positions in the short and ultra-short term before correctional signals appear of the flat dynamics returns to the market.
Resistance levels: 0.6833, 0.6857, 0.6880.
Support levels: 0.6788, 0.6760, 0.6712, 0.6686.
Trading tips
Long positions can be opened after the breakout of the level of 0.6833 with the targets at 0.6880 or 0.6900 and stop loss 0.6800.
Short positions can be opened after a rebound from the level of 0.6833 and breakdown of the level of 0.6800 with the targets at 0.6760–0.6740 and stop loss 0.6840.
Implementation period: 2–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.6840
Take Profit 0.6880, 0.6900
Stop Loss 0.6800
Key Levels 0.6686, 0.6712, 0.6760, 0.6788, 0.6833, 0.6857, 0.6880
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6790
Take Profit 0.6760, 0.6740
Stop Loss 0.6840
Key Levels 0.6686, 0.6712, 0.6760, 0.6788, 0.6833, 0.6857, 0.6880
Yesterday, NZD grew moderately against USD and approached the highs renewed on July 26.
USD is declining before Fed Interest Rate Decision on Wednesday. The rate is expected to stay at the level of 2.0%, and there no announcement of new economic forecasts is expected. In addition, the currency is under pressure due to instability in the US Administration. President Donald Trump said that he admits the possibility of suspending the work of the Government if Democratic Party votes against the draft law on the borders protection, which includes the building a wall on the border with Mexico, in Congress.
On Tuesday, the releases of June Personal Consumption Expenditures (remain at the same level of 0.4%) and Personal income (will grow from 0.2% to 0.4%) is forecasted, which can support the instrument.
Support and resistance
On the daily chart, Bollinger bands are moving flat. The price range is slightly widening from above, limiting the development of the "bullish" dynamics. MACD grows, keeping a moderate buy signal (the histogram is above the signal line). Stochastic reverses upwards, reflecting the emergence of "bullish" potential in the short term.
It is better to open long positions in the short and ultra-short term before correctional signals appear of the flat dynamics returns to the market.
Resistance levels: 0.6833, 0.6857, 0.6880.
Support levels: 0.6788, 0.6760, 0.6712, 0.6686.
Trading tips
Long positions can be opened after the breakout of the level of 0.6833 with the targets at 0.6880 or 0.6900 and stop loss 0.6800.
Short positions can be opened after a rebound from the level of 0.6833 and breakdown of the level of 0.6800 with the targets at 0.6760–0.6740 and stop loss 0.6840.
Implementation period: 2–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.6840
Take Profit 0.6880, 0.6900
Stop Loss 0.6800
Key Levels 0.6686, 0.6712, 0.6760, 0.6788, 0.6833, 0.6857, 0.6880
Alternative scenario
Recommendation SELL STOP
Entry Point 0.6790
Take Profit 0.6760, 0.6740
Stop Loss 0.6840
Key Levels 0.6686, 0.6712, 0.6760, 0.6788, 0.6833, 0.6857, 0.6880