NZD/USD: growth to December highs
24 January 2019, 14:06
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY |
| Entry Point | 0.6768 |
| Take Profit | 0.6950, 0.6970 |
| Stop Loss | 0.6720 |
| Key Levels | 0.6000, 0.6550, 0.6590, 0.6650, 0.6705, 0.6725, 0.6760, 0.6810, 0.6850, 0.6880, 0.6900, 0.6950, 0.6970 |
Current trend
NZD continues to trade against USD within the medium-term upward trend. In December, the rate declined after good growth but was able to return to an upward impulse. For the first two weeks of the new year, the instrument strengthened by more than 250 points, and then was corrected downwards within the upward trend.
This week, the rising wave is formed again. The catalyst for growth remains the weak position of USD and favorable data on the main sectors of the economy of New Zealand.
Today, traders are waiting for the publication of US data on the labor market and major indices.
Support and resistance
In the medium term, the pair can test the local maximum of the beginning of December 2018 at the level of 0.6970 again. If the price consolidates on it, it can rise to 0.7020, 0.7045. Further growth is unlikely since USD usually grows in waves: now it is losing demand but after this wave, investor interest in the weakened currency will increase significantly.
Technical indicators reflect a high probability of pair consolidation within the sideways trend, MACD volumes are decreasing, the signal line is at zero level, and Bollinger bands are lined up horizontally.
Resistance levels: 0.6810, 0.6850, 0.6880, 0.6900, 0.6950, 0.6970.
Support levels: 0.6760, 0.6725, 0.6705, 0.6650, 0.6590, 0.6550, 0.6000.
Trading tips
It is relevant to increase the volumes of long positions from the current level with the targets at 0.6950, 0.6970 and stop loss 0.6720.
NZD continues to trade against USD within the medium-term upward trend. In December, the rate declined after good growth but was able to return to an upward impulse. For the first two weeks of the new year, the instrument strengthened by more than 250 points, and then was corrected downwards within the upward trend.
This week, the rising wave is formed again. The catalyst for growth remains the weak position of USD and favorable data on the main sectors of the economy of New Zealand.
Today, traders are waiting for the publication of US data on the labor market and major indices.
Support and resistance
In the medium term, the pair can test the local maximum of the beginning of December 2018 at the level of 0.6970 again. If the price consolidates on it, it can rise to 0.7020, 0.7045. Further growth is unlikely since USD usually grows in waves: now it is losing demand but after this wave, investor interest in the weakened currency will increase significantly.
Technical indicators reflect a high probability of pair consolidation within the sideways trend, MACD volumes are decreasing, the signal line is at zero level, and Bollinger bands are lined up horizontally.
Resistance levels: 0.6810, 0.6850, 0.6880, 0.6900, 0.6950, 0.6970.
Support levels: 0.6760, 0.6725, 0.6705, 0.6650, 0.6590, 0.6550, 0.6000.
Trading tips
It is relevant to increase the volumes of long positions from the current level with the targets at 0.6950, 0.6970 and stop loss 0.6720.
No comments:
Write comments