NZD/USD: the pair is falling
09 August 2018, 14:58
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL |
| Entry Point | 0.6652 |
| Take Profit | 0.6610, 0.6575, 0.6530 |
| Stop Loss | 0.6740 |
| Key Levels | 0.6400, 0.6470, 0.6530, 0.6575, 0.6610, 0.6650, 0.6690, 0.6710, 0.6725, 0.6770, 0.6790, 0.6830 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL LIMIT |
| Entry Point | 0.6690 |
| Take Profit | 0.6610, 0.6575, 0.6530 |
| Stop Loss | 0.6740 |
| Key Levels | 0.6400, 0.6470, 0.6530, 0.6575, 0.6610, 0.6650, 0.6690, 0.6710, 0.6725, 0.6770, 0.6790, 0.6830 |
Current trend
NZD declines against USD after the growth of demand for American dollar and poor New Zealand macroeconomic statistics. Last week, the pair consolidated within a sideways narrow channel near a strong support level and a local minimum. Today, after the commentaries about the high probability of RBNZ interest rate decrease in the short term, the pair broke down the local minimum and fell to the next key support level of 0.6650.
Today and tomorrow, special attention should be paid to data on the labor market, inflation and major US indices.
Support and resistance
In the short term, the downward momentum is expected to develop to the level of 0.6610 (the lower border of the downward channel) due to sales of NZD and growth in demand for USD against a fundamental background. Then, correction to its upper border at 0.6690 is possible; however, short positions within the trend will remain relevant in the medium term.
Technical indicators confirm the fall forecast, the volumes of short positions of MACD have sharply increased, and Bollinger bands are directed downwards.
Resistance levels: 0.6690, 0.6710, 0.6725, 0.6770, 0.6790, 0.6830.
Support levels: 0.6650, 0.6610, 0.6575, 0.6530, 0.6470, 0.6400.
Trading tips
It is relevant to increase the volumes of short positions from the current level and open pending short positions from the level of 0.6690 with the targets at 0.6610, 0.6575, and 0.6530 and stop loss 0.6740.
NZD declines against USD after the growth of demand for American dollar and poor New Zealand macroeconomic statistics. Last week, the pair consolidated within a sideways narrow channel near a strong support level and a local minimum. Today, after the commentaries about the high probability of RBNZ interest rate decrease in the short term, the pair broke down the local minimum and fell to the next key support level of 0.6650.
Today and tomorrow, special attention should be paid to data on the labor market, inflation and major US indices.
Support and resistance
In the short term, the downward momentum is expected to develop to the level of 0.6610 (the lower border of the downward channel) due to sales of NZD and growth in demand for USD against a fundamental background. Then, correction to its upper border at 0.6690 is possible; however, short positions within the trend will remain relevant in the medium term.
Technical indicators confirm the fall forecast, the volumes of short positions of MACD have sharply increased, and Bollinger bands are directed downwards.
Resistance levels: 0.6690, 0.6710, 0.6725, 0.6770, 0.6790, 0.6830.
Support levels: 0.6650, 0.6610, 0.6575, 0.6530, 0.6470, 0.6400.
Trading tips
It is relevant to increase the volumes of short positions from the current level and open pending short positions from the level of 0.6690 with the targets at 0.6610, 0.6575, and 0.6530 and stop loss 0.6740.
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