Current trend
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 Central Bank 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 Central Bank 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 inflation, the target level of which is at 2%.
Support and resistance
Bollinger Bands on the daily chart are almost horizontal. The price range is stable, limiting the development of the "bullish" trend in the short term. The MACD indicator is growing, keeping a buy signal (the histogram is located above the signal line). Stochastic 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.
Trading tips
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.
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 Central Bank 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 Central Bank 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 inflation, the target level of which is at 2%.
Support and resistance
Bollinger Bands on the daily chart are almost horizontal. The price range is stable, limiting the development of the "bullish" trend in the short term. The MACD indicator is growing, keeping a buy signal (the histogram is located above the signal line). Stochastic 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.
Trading tips
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.