Apr 10, 2020, 8:32:26 AM

NZD/USD: general review

Current trend

The pair continues correcting upwards and is trading near 0.6080 amid a possible continuation of USD weakening.

The situation with the spread of coronavirus continues to be in the spotlight, and here New Zealand has seen progress: the number of new cases reduced. The New Zealand regulator continues the program of quantitative easing and redemption of government bonds. Global Dairy Trade Price Index amounted to 1.2% against expectations of –2.0%. Electronic Card Retail Sales in March fell to –3.9% from 0.5% in February, which was due to the introduction of quarantine.

The USD Index fell yesterday and returned to a range below the key level of 100 points after the news that OPEC+ countries agreed to reduce oil production by 10M barrels per day from May to June this year. At the moment, the USD Index is trading at 99.500 and today the volatility of the market is expected to be low, as there is a holiday in both the USA and New Zealand.

Support and resistance

Correction to the global downtrend continues. The price came close to the resistance line of the main stage of the trend. Fast EMAs on the Alligator indicator have crossed in the direction of growth, and the histogram of the AO oscillator has reached zero level and is preparing to move into the purchase zone. Most indicators indicate continued growth.

Resistance levels: 0.6140, 0.6340.

Support levels: 0.6020, 0.5850.

Trading tips

If the asset continues corrective growth and the price consolidates above 0.6140, short-term buy positions with the target of 0.6340 will be relevant. Stop-loss – 0.6050.

If the asset continues global decline, and the price consolidates below the local low at 0.6020, short positions can be opened with the target at 0.5850. Stop-loss – 0.6100.

Implementation time: 7 days and more.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY STOP

  • Entry Point

    0.6140

  • Take Profit

    0.6340

  • Stop Loss

    0.6050

  • Key Levels

    0.5850, 0.6020, 0.6140, 0.6340

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    0.6020

  • Take Profit

    0.5850

  • Stop Loss

    0.6100

  • Key Levels

    0.5850, 0.6020, 0.6140, 0.6340

Tifia trading account

Open

NZD/USD analysis for today.