The New Zealand dollar rose significantly against the US dollar on Wednesday, hitting a new local maximum since October 24. The reason for the "bullish" dynamics was the corrective mood for the American dollar, as well as quite optimistic RBNZ meeting minutes.
As expected, the of New Zealand left the interest rate at the previous level of 1.75%. At the same time, the regulator stressed that rates will remain low for quite some time. Commenting on economic prospects, the noted that despite the uncertainty of the current situation, the development expectations remain positive. A further decline in the New Zealand dollar will lead to an acceleration of , the target level of which is at 2%.
on the are almost horizontal. The price range is stable, limiting the development of the "bullish" trend in the short term. The indicator is growing, keeping a buy signal (the histogram is located above the signal line). is located near the overbought zone, which speaks in favor of corrective decline at the end of this week.
Resistance levels: 0.6972, 0.7000, 0.7053, 0.7100.
Support levels: 0.6949, 0.6930, 0.6900, 0.6873.
To open long positions, you can rely on the breakout of a strong psychological level of 0.7000. Take profit – 0.7060 or 0.7100. The stop loss is 0.6950. Term of realization: 2-3 days.
Reverse at the current price levels with a subsequent breakdown of 0.6930 would be a sell signal with the targets of 0.6873 or 0.6850. Stop loss is 0.6975. Term of realization: 2-3 days.