NZD/USD: major hindrances lie ahead of growth
20 September 2017, 14:42
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL LIMIT |
| Entry Point | 0.7455, 0.7550 |
| Take Profit | 0.7130, 0.7010 |
| Stop Loss | 0.7610 |
| Key Levels | 0.6850, 0.6970, 0.7010, 0.7130, 0.7200, 0.7250, 0.7275, 0.7370, 0.7420, 0.7455, 0.7530, 0.7550, 0.7575, 0.7650, 0.7700 |
Current trend
NZD moved to the consolidation stage against USD once again. Long downward correction after rapid summer growth was replaced by an upward impulse in view of further decrease of the rate of the US currency. USD continues to experience investor deficiency and the fundamental background only gives additional pressure. In view of this USD is losing positions against the majors including NZD. In the end of August the pair reached the key support level of 0.7300 but failed to break through it and reversed, after which an upward wave started to form.
During this week the pair has been consolidating in view of the fall of the US currency. Today special attention should be paid to the Fed's decision on the interest rate and the regulator's press conference. Tomorrow the data on the New Zealand economic growth rate and the US labor market will be released.
Support and resistance
Technically the pair remains in the long-term upward trend but is likely to reverse and move to the lower border of the range at 0.7010 after short-term growth.
Support levels: 0.7370, 0.7275, 0.7250, 0.7200, 0.7130, 0.7010, 0.6970, 0.6850.
Resistance levels: 0.7420, 0.7455, 0.7530, 0.7550, 0.7575, 0.7650, 0.7700.
Trading tips
Pending short positions may be opened from key resistance levels at 0.7455, 0.7550 with targets at 0.7130, 0.7010. Stop-loss may be placed at 0.7610.
NZD moved to the consolidation stage against USD once again. Long downward correction after rapid summer growth was replaced by an upward impulse in view of further decrease of the rate of the US currency. USD continues to experience investor deficiency and the fundamental background only gives additional pressure. In view of this USD is losing positions against the majors including NZD. In the end of August the pair reached the key support level of 0.7300 but failed to break through it and reversed, after which an upward wave started to form.
During this week the pair has been consolidating in view of the fall of the US currency. Today special attention should be paid to the Fed's decision on the interest rate and the regulator's press conference. Tomorrow the data on the New Zealand economic growth rate and the US labor market will be released.
Support and resistance
Technically the pair remains in the long-term upward trend but is likely to reverse and move to the lower border of the range at 0.7010 after short-term growth.
Support levels: 0.7370, 0.7275, 0.7250, 0.7200, 0.7130, 0.7010, 0.6970, 0.6850.
Resistance levels: 0.7420, 0.7455, 0.7530, 0.7550, 0.7575, 0.7650, 0.7700.
Trading tips
Pending short positions may be opened from key resistance levels at 0.7455, 0.7550 with targets at 0.7130, 0.7010. Stop-loss may be placed at 0.7610.
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