Today, the NZD/USD pair has strengthened amid the publication of FOMC Minutes and New Zealand Producer Prices statistics. In the third quarter, output and input prices both grew 1.3% and 1.6%, respectively.
However, another cut in NZ interest rates is possible at the upcoming RBNZ meeting. The country is facing a decline in economic growth due to a slowdown in China's economy, the largest trading partner of New Zealand, and a fall in commodity and dairy products prices. Thus, in the medium term, the NZD/USD pair may continue declining.
Support and resistance
The NZD/USD pair has strengthen to the of 0.6530 (EMA50 on the 4-hour chart), which is also the upper border of a on the 4-hour chart.
According to the OsMA and indicators on the , short positions are more preferable, however, an upward correction may continue. On the 4-hour chart, is in the overbought zone.
Support levels: 0.6500, 0.6470, 0.6435, 0.6400.
Resistance levels: 0.6585, 0.6615, 0.6700, 0.6770.
Short positions can be opened from the levels of 0.6550, 0.6530, 0.6510 with targets at 0.6470, 0.6435, 0.6400, 0.6310 and stop-loss at 0.6560.
Long positions would become valid only after the consolidation above the level of 0.6610.