NZD/USD: general review
30 January 2019, 13:29
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY |
| Entry Point | 0.6839 |
| Take Profit | 0.7020 |
| Stop Loss | 0.6800 |
| Key Levels | 0.6590, 0.6705, 0.6725, 0.6760, 0.6810, 0.6850, 0.6870, 0.6900, 0.6950, 0.6970, 0.7020, 0.7070 |
Current trend
NZD remains in the medium-term upward trend against USD.
At the beginning of last week, the pair reached the lower border of the range, but, unable to consolidate below it, rebounded from it and began to form a new ascending wave. In several days, the instrument strengthened noticeably and reached local maxima at 0.6850, 0.6870. The main catalyst was the growth of the New Zealand dollar on favorable data on inflation, while the US currency did not receive fundamental and investor support. This week, the pair has moved to the lateral consolidation and is trading within a narrow range of 0.6870–0.6820.
Today, the Fed’s decision on interest rates will be published, and at the end of the week, key data on the US labor market will be released, including information on Nonfarm Payrolls and unemployment.
Support and resistance
If the pair manages to overcome the levels of 0.6850, 0.6870, then it will consolidate within the ascending range and may go to the upper borders of the channel at 0.6970, 0.7020. In the case of a rebound from 0.6870, a fall to the lower border of the channel at 0.6760 is expected, and in the future, a change of trend to a downward one. The most likely scenario is the first; consensus forecasts show a decline in Nonfarm Payrolls.
Technical indicators confirm the growth forecast: MACD indicates the preservation of the high volume of long positions, Bollinger Bands are directed upwards.
Support levels: 0.6810, 0.6760, 0.6725, 0.6705, 0.6590.
Resistance levels: 0.6850, 0.6870, 0.6900, 0.6950, 0.6970, 0.7020, 0.7070.
Trading tips
Long positions may be opened from the current level with the target at 0.7020 and stop loss at 0.6800.
NZD remains in the medium-term upward trend against USD.
At the beginning of last week, the pair reached the lower border of the range, but, unable to consolidate below it, rebounded from it and began to form a new ascending wave. In several days, the instrument strengthened noticeably and reached local maxima at 0.6850, 0.6870. The main catalyst was the growth of the New Zealand dollar on favorable data on inflation, while the US currency did not receive fundamental and investor support. This week, the pair has moved to the lateral consolidation and is trading within a narrow range of 0.6870–0.6820.
Today, the Fed’s decision on interest rates will be published, and at the end of the week, key data on the US labor market will be released, including information on Nonfarm Payrolls and unemployment.
Support and resistance
If the pair manages to overcome the levels of 0.6850, 0.6870, then it will consolidate within the ascending range and may go to the upper borders of the channel at 0.6970, 0.7020. In the case of a rebound from 0.6870, a fall to the lower border of the channel at 0.6760 is expected, and in the future, a change of trend to a downward one. The most likely scenario is the first; consensus forecasts show a decline in Nonfarm Payrolls.
Technical indicators confirm the growth forecast: MACD indicates the preservation of the high volume of long positions, Bollinger Bands are directed upwards.
Support levels: 0.6810, 0.6760, 0.6725, 0.6705, 0.6590.
Resistance levels: 0.6850, 0.6870, 0.6900, 0.6950, 0.6970, 0.7020, 0.7070.
Trading tips
Long positions may be opened from the current level with the target at 0.7020 and stop loss at 0.6800.
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