Current trend
The NZD/USD pair finished last week with choppy trading and remained near its local lows at 0.6500. On Thursday, in her speech Fed’s Chair Janet Yellen confirmed that monetary policy tightening in the US could happen at the December meeting of the regulator. However, further strengthening in the USD in the end of the week was prevented by poor macroeconomic statistics from the US. Data on Retail Sales and the Producer Price Index for October came out worse than their forecasts.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally. MACD is attempting to turn down and keeping a sell signal. Stochastic is also turning down.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6534 (local low), 0.6500 (6, 10 and 12 November lows), 0.6457.
Resistance levels: 0.6560 (local high), 0.6585 (11 November high), 0.6618, 0.6648, 0.6697, 0.6724, 0.6791 (30 October high), 0.6812.
Trading tips
Long positions can be opened after the breakout of the level of 0.6543 with the target at 0.6648 and stop-loss at 0.6500. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.6500 with the target at 0.6400 and stop-loss at 0.6560. Validity – 2-3 days.