Yesterday the pair grew and recovered some of the losses of the previous day when the NZD significantly declined after the decision by the RBNZ on interest rates. The rate remained unchanged at its current 2.5% but the regulator noted that additional stimulus measures would be applied if inflation does not accelerate in the near future.
The pair was supported by yesterday’s poor data on Durable Goods Orders from the US that in December fell by 5.1%, which was significantly worse than forecasts. Some support to the USD came from data on Initial Jobless Claims, the number of which fell from 294 to 278 thousands.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is narrowing. MACD is slowly growing and giving a weak buy signal. Stochastic is falling.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6475 (local low), 0.6416 (27 January low), 0.6381, 0.6347 (20 January low).
Resistance levels: 0.6500 (local high), 0.6534, 0.6558 (21 January high), 0.6600, 0.6660, 0.6690, 0.6724.
Long positions can be opened after the breakout of the level of 0.6545 (with the appropriate indicators signals) with targets at 0.6580, 0.6620 and stop-loss at 0.6510. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.6490 with the target at 0.6430 and stop-loss at 0.6520. Validity – 2-3 days.Publication source