NZD/USD: the pair is trading ambiguously

Current trend

Yesterday, the pair NZD/USD rose moderately. However, the instrument failed to consolidate at the new highs, and by the end of the daily session, the New Zealand dollar had lost most of its advantage. The pressure is exerted by sharply worsened prospects for concluding a trade agreement between the United States and China, which threatens to further slow the global economy down. Washington blacklisted some Chinese companies, banning them from working with American companies and accusing them of oppressing China’s Muslim minorities.

Today, during the Asian session, the price grows again, waiting for the appearance of new drivers on the market. Investors are focused on the speech of Jerome Powell and the publication of the FOMC Fed meeting minutes, which may clarify the prospects of the monetary policy of the regulator.

Support and resistance

On the daily chart, Bollinger bands are moving flat. The price range is slightly expanding from above but remains narrow enough for the current trend. The MACD indicator is growing, keeping a moderate buy signal (the histogram is above the signal line). Stochastic reversed downwards from the level of 80 and reflects the risks of corrective decline in the ultra-short term.

It is better to wait until the market situation is clarified before opening new positions.

Resistance levels: 0.6336, 0.6361, 0.6376, 0.6400.

Support levels: 0.6282, 0.6267, 0.6235, 0.6200.

Trading tips

Long positions can be opened after the breakout of the level of 0.6336 with the target at 0.6400. Stop loss – 0.6300.

Short positions can be opened after the breakdown of the levels of 0.6282–0.6267 with the target at 0.6200. Stop loss – 0.6290 or 0.6300.

Implementation period: 2–3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    0.6340

  • Take Profit

    0.6400

  • Stop Loss

    0.6300

  • Key Levels

    0.6200, 0.6235, 0.6267, 0.6282, 0.6336, 0.6361, 0.6376, 0.6400

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    0.6275, 0.6260

  • Take Profit

    0.6200

  • Stop Loss

    0.6290, 0.6300

  • Key Levels

    0.6200, 0.6235, 0.6267, 0.6282, 0.6336, 0.6361, 0.6376, 0.6400