NZD/USD: ascending movement will continue

March 26, 2014

Current trend

Since the beginning of this week the currency pair NZD/USD has traded in the uptrend, slowly regaining from losses, caused by the US Fed decision to reduce bond purchase program. Negative US statistics puts pressure on the American dollar. Business activity index in the US manufacturing sector fell below the forecast, estimated by Markit and Richmond fell, reaching 55.5 and 7 points respectively.

Poor results were also demonstrated by the housing market. Sales of new houses fell below the level of January, amounting to 440 thousand.

Volume of orders for durable products in the USA for February will become known today. According to forecast this index can be the best since November last year, reaching the level of 1.1%, which will provide support to the American currency.

Support and resistance

In the near future the price will continue to go up to the levels of 0.8610 and 0.8640. However, correction, (which is not excluded, due to fundamental data), can reach the levels of 0.8580 and 0.8560 (middle moving average of Bollinger bands indicator).

Technical indicators confirm a chance of ascending movement. Bollinger bands demonstrate divergence, confirming uptrend; however the price chart has broken down the upper moving average, which suggests correction. MACD histogram has moved to the positive zone, forming a buy signal. Stochastic lines have entered overbought zone, demonstrating a similar signal. 

Trading tips

In the current situation it makes sense to place long positions from the current price level with take profit at 0.8640. Short positions can be opened if the price falls to the level of 0.8580.

Dmitry Zolotov
Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

October 27, 2016
Brexit Barometer
The Brexit vote back in June taught markets never to take anything for granted and the same holds true for the upcoming US Presidential election. A poll lead for Trump in Florida yesterday, combined with some further revelations in the daily mud-slinging...
October 26, 2016
Sterling reversal
What we saw in sterling yesterday was instructive of the dilemma that may face other central bankers before long. Carney played down expectations of a further easing in policy before the end of the year, as was strongly suggested in August when they eased policy in the wake of the Brexit referendum...
October 24, 2016
Important economic events for the coming week
Monday, October 24, 2016 - JPY Small Business Confidence (OCT), EUR Markit/BME Germany Manufacturing PMI (OCT P), USD Markit US Manufacturing PMI (OCT P)...

Vantage FX Rating
Orbex Rating
Fort Financial Services Rating
OctaFX Rating
HYCM Rating
FXTM Rating

Grand Option Rating
Anyoption Rating
EZTrader Rating
Empire Option Rating
24option Rating
TopOption Rating