NZD/USD: New Zealand dollar is growing
29 January 2019, 10:27
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 0.6855, 0.6880 |
| Take Profit | 0.6910, 0.6940 |
| Stop Loss | 0.6814 |
| Key Levels | 0.6726, 0.6746, 0.6789, 0.6814, 0.6847, 0.6871, 0.6910, 0.6940 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 0.6810 |
| Take Profit | 0.6746, 0.6726 |
| Stop Loss | 0.6840, 0.6847 |
| Key Levels | 0.6726, 0.6746, 0.6789, 0.6814, 0.6847, 0.6871, 0.6910, 0.6940 |
Current trend
NZD rose against USD on Monday, updating local highs of December 18. Nevertheless, the instrument failed to retain the occupied positions, and by the end of the afternoon session, it returned to the previous levels.
Australia's markets were closed yesterday due to the national holiday, and there was almost no interesting macroeconomic statistics from New Zealand, so investors focused on American drivers. Among other things, the focus remains on the tense domestic political situation in the US and the development of the US-China trade conflict.
Today, the pair is growing unsteadily. The instrument is supported by the statistics on New Zealand trade balance in December. Exports rose from 4.91B dollars to 5.48B, which, while imports fell from 5.86B dollars to 5.22B, led to a noticeable increase in the balance sheet surplus to 264M dollars while the forecast was 225M.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range expands from above, freeing a path to new local highs for the "bulls". MACD indicator is growing preserving a stable buy signal (located above the signal line). Stochastic, having reached the "80" level, reversed into the horizontal plane, indicating risks of correctional decline in the short and/or ultra-short term.
Until the situation at the market is clarified, the existing long positions should be held.
Resistance levels: 0.6847, 0.6871, 0.6910, 0.6940.
Support levels: 0.6814, 0.6789, 0.6746, 0.6726.
Trading tips
To open long positions, one can rely on the breakout of 0.6847 or 0.6871. Take profit — 0.6910 or 0.6940. Stop loss — 0.6840 or 0.6814. Implementation period: 2-3 days.
The development of corrective dynamics with the breakdown of 0.6814 may become a signal to further sales with target at 0.6746 or 0.6726. Stop loss — 0.6840 or 0.6847. Implementation period: 1-2 days.
NZD rose against USD on Monday, updating local highs of December 18. Nevertheless, the instrument failed to retain the occupied positions, and by the end of the afternoon session, it returned to the previous levels.
Australia's markets were closed yesterday due to the national holiday, and there was almost no interesting macroeconomic statistics from New Zealand, so investors focused on American drivers. Among other things, the focus remains on the tense domestic political situation in the US and the development of the US-China trade conflict.
Today, the pair is growing unsteadily. The instrument is supported by the statistics on New Zealand trade balance in December. Exports rose from 4.91B dollars to 5.48B, which, while imports fell from 5.86B dollars to 5.22B, led to a noticeable increase in the balance sheet surplus to 264M dollars while the forecast was 225M.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range expands from above, freeing a path to new local highs for the "bulls". MACD indicator is growing preserving a stable buy signal (located above the signal line). Stochastic, having reached the "80" level, reversed into the horizontal plane, indicating risks of correctional decline in the short and/or ultra-short term.
Until the situation at the market is clarified, the existing long positions should be held.
Resistance levels: 0.6847, 0.6871, 0.6910, 0.6940.
Support levels: 0.6814, 0.6789, 0.6746, 0.6726.
Trading tips
To open long positions, one can rely on the breakout of 0.6847 or 0.6871. Take profit — 0.6910 or 0.6940. Stop loss — 0.6840 or 0.6814. Implementation period: 2-3 days.
The development of corrective dynamics with the breakdown of 0.6814 may become a signal to further sales with target at 0.6746 or 0.6726. Stop loss — 0.6840 or 0.6847. Implementation period: 1-2 days.
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