NZD/USD: Will the pair be able to reach the level of 0.6800 by the end of the year?

12 June, 2015

Current trend

At the last meeting of the Reserve Bank of New Zealand on Thursday the interest rate was lowered by 25 basis points to the level of 3.5%. The governor of the Bank Graeme Wheeler said that probability of the further easing of the monetary policy would depend on the economic situation in New Zealand. Amid this news the pair NZD/USD has lost over 200 points and the closing price of the pair was at the level of 0.7011.

Today, the pair continues to decline. Pressure was added by the fact that RBNZ has downgraded the forecast for the pair from 0.6800 to 0.7000 by the end of 2015.

US data on producer price index for May will be released at 17:00 (GMT+3) and consumer price index Reuters/Michigan for June. These indices can increase volatility in the pair with the USD, including the pair NZD/USD.

Support and resistance

The pair has been moving in the downtrend since July 2014 and at the moment it is traded at 0.7000, which is the lowest level since June 2009. The pair has broken the strong resistance level of 0.7110 (ÅÌÀ200 on the monthly chart).

On the daily and four-hour charts the indicators OsMA and Stochastic give sell signals.

Support levels: 0.6930 and 0.6850.

Resistance levels: 0.7050, 0.7090, 0.7110, 0.7185, 0.7200, 0.7220, 0.7275 and 0.7300.

Trading tips

It is advisable to open short positions from the levels of 0 .7045, 0.7085, 0.7155, 0.7185 and 0.7220 with the target of 0.6800. Alternative scenario is possible after breakdown of the level of 0.7300 with the targets of 0.7450 and 0.7540. 


Source link  
S&P500: will the correction continue?

Since December 2015 the index S&P500 has been in the downtrend. In February, the index fell to the level of 2108.0, which is almost 15%. In the past 4 sessions the index had adjusted, approaching the level of 1935.0...

XAU/USD: A decline is likely to continue

On the 4-hour chart, the price is testing the level of 1210.80 (23.6% correction); the ascending 38.2% fan line is an additional resistance for the price. If this resistance area is overcome, a growth would continue to 1224.90 and 1249.25...

XAG/USD: pair is falling on February 16, 2016

Yesterday, the price of silver fell to last Thursday’s opening levels, when a new local low since the end of October 2015 was reached. Prices of commodity assets are falling as risk appetite is gradually returning to the market...


XAG/USD: silver slowed growth on February 11, 2016

Yesterday the pair showed choppy trade and closed at its opening level. The price was pressured by growth in the European stock markets and Fed Chair Janet Yellen testimony before the US Congress...

Analytical review of American Express Company

The Company ranks 23th on capitalization in the finance sector among the Issuers, trading in the American stock market. On 22 January the company reported for Q4 of the fiscal year of 2015. The company has been demonstrating negative dynamics for the last few quarters...

Brent: decline has resumed on February 05, 2016

Since the opening of the trading day the price of crude oil Brent is declining. On the hourly chart the price has broken down the first support level of 34.35 (ÅÌÀ50), which is ÅÌÀ200 on the four-hour chart...


XAU/USD: Gold is overbought on February 04, 2016

The price of gold has returned to the level of 1190.00 USD per troy ounce, (which is had at the beginning of November), regaining half of the losses since mid-October 2015. On the daily chart the price has broken down strong resistance levels 1129.00 (ÅÌÀ200)...

EUROSTOXX50 : Volatility in the financial markets continues

Amid sharp decline in the global stock indices since the beginning of the year European index EUROSTOXX50 has lost about 14%. During the final surge of decline from 3515.0 to 2840.0 last December, the price has managed to go above the level of 23.6% Fibonacci...

Brent: Oil prices can renew the plunge

On the daily chart the price has broken down the upper line of the downward channel at the level of 35.50. Although, on the daily chart the indicators OsMA and Stochastic recommend long positions; on the four-hour chart the indicators give signals in favor of the sell positions...

  


Share: