NZD/USD: general review
15 August 2018, 14:03
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL |
| Entry Point | 0.6551 |
| Take Profit | 0.6350, 0.6240 |
| Stop Loss | 0.6680 |
| Key Levels | 0.6240, 0.6350, 0.6430, 0.6490, 0.6510, 0.6575, 0.6610, 0.6650, 0.6690, 0.6770, 0.6830 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL LIMIT |
| Entry Point | 0.6610, 0.6650 |
| Take Profit | 0.6350, 0.6240 |
| Stop Loss | 0.6680 |
| Key Levels | 0.6240, 0.6350, 0.6430, 0.6490, 0.6510, 0.6575, 0.6610, 0.6650, 0.6690, 0.6770, 0.6830 |
Current trend
The New Zealand currency continues to decline against the US dollar as part of a downward trend. The main catalyst for the fall of the pair was the growth of investment attractiveness to the US currency and a weak macroeconomic background for New Zealand. Additional pressure on the pair was provided by the comments of the RBNZ representatives on the possible lowering of the interest rate, right after that the pair dropped down, losing more than 150 points at the end of the trading week. At the beginning of the current trading week momentum persisted and the pair went lower, now “kiwi” against the US dollar is trading at around 0.6550.
Today, special attention should be paid to retail sales and industrial production of the United States, and at the end of the week there will be releases on the labor market and the construction sector.
Support and resistance
In the short term, demand for the US dollar and its growth towards major currencies is expected to increase. Technical indicators confirm the fall forecast of the pair: MACD indicates an increase in the volume of short positions; the Bollinger bands are directed downwards.
Support levels: 0.6510, 0.6490, 0.6430, 0.6350, 0.6240.
Resistance levels: 0.6575, 0.6610, 0.6650, 0.6690, 0.6770, 0.6830.
Trading tips
In this situation, it is important to increase the volume of short positions from the current level and set pending sell orders at resistance levels of 0.6610, 0.6650 with targets at 0.6350, 0.6240 and stop loss at 0.6680
The New Zealand currency continues to decline against the US dollar as part of a downward trend. The main catalyst for the fall of the pair was the growth of investment attractiveness to the US currency and a weak macroeconomic background for New Zealand. Additional pressure on the pair was provided by the comments of the RBNZ representatives on the possible lowering of the interest rate, right after that the pair dropped down, losing more than 150 points at the end of the trading week. At the beginning of the current trading week momentum persisted and the pair went lower, now “kiwi” against the US dollar is trading at around 0.6550.
Today, special attention should be paid to retail sales and industrial production of the United States, and at the end of the week there will be releases on the labor market and the construction sector.
Support and resistance
In the short term, demand for the US dollar and its growth towards major currencies is expected to increase. Technical indicators confirm the fall forecast of the pair: MACD indicates an increase in the volume of short positions; the Bollinger bands are directed downwards.
Support levels: 0.6510, 0.6490, 0.6430, 0.6350, 0.6240.
Resistance levels: 0.6575, 0.6610, 0.6650, 0.6690, 0.6770, 0.6830.
Trading tips
In this situation, it is important to increase the volume of short positions from the current level and set pending sell orders at resistance levels of 0.6610, 0.6650 with targets at 0.6350, 0.6240 and stop loss at 0.6680
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