NZD/USD: the pair is under correction after yesterday's growth

March 19, 2015

Current trend
NZD/USD has been highly volatile his week.  Quotes dropped to a level of 0.7274 on Tuesday once the information on an 8.8% decrease in dairy prices was published.  However, the price increased sharply on Wednesday having reached a 2-week high at 0.7547. The increase was due to FED's meeting where the outlook for US GDP growth for a few next years was downgraded. Thus, it may amount to 2,3%-2,7%  instead of 2,5%-3,0% in 2015-2016. Besides, the NZ currency was supported with positive data on NZ GDP over the fourth quarter 2014. The month-on-month and year-on-year increase amounted to 0,8% and 3.5%, respectively, which was better than expected. 

Support and resistance
From technical point of view, the pair is trading within an upward channel. The price has reached its upper border and started a correction that is going on at the present time. A level of 0.7380 (middle line of Bollinger bands) seems to be bears' key target. Once it's broken down, the price may drop to the lower border of the channel to about 0.7325-0.7300. If not, a level of 0.7600 may become bulls' new goal. The rest of indicators are producing opposite signals. The MACD histogram is in the negative zone and its volumes are stable. Stochastic lines reversed downwards.

Support levels: 0.7380, 0.7325, 0.7300.
Resistance levels: 0.7450, 0.7547, 0.7600.

Trading tips
Short positions with a target of 0.7300 should be opened in case the price breaks a level of 0.7380. Long positions may be opened after the price breaks a level of 0.7450. The first target of such positions would be a level of 0.7547, the second target — 0.7600.

Dmitriy Zolotov
Analyst at LiteForex Investments Limited

Publication source
LiteForex information  LiteForex reviews

February 24, 2017
Oil prices slightly grew
Brent oil prices extended their recovery in the Asian session on Thursday. Buyers led the price higher and broke 56.50 dollars per barrel in the early European morning...
February 24, 2017
Dollar drifts on Fed's lack of optimism
FOMC February meeting minutes released on Wednesday failed to provide support for the bulls to manage a sustainable breakout above 101.50...
February 24, 2017
Can gold continue post Fed rally?
Gold jumped to a 3 month high today, snapping a 3-day losing streak today after traders digested yesterday’s minutes meeting from the US Federal Reserve...

XM Rating
OctaFX Rating
Vantage FX Rating
Fort Financial Services Rating
OANDA Rating
Larson&Holz IT Ltd Rating

Binary Brokerz Rating
OptionFair Rating
Empire Option Rating
TopOption Rating
365BinaryOption Rating
Beeoptions Rating