The NZD/USD pair is trying to rise from the record lows near 0.6500 amid the publication of the US macroeconomic statistics which failed to comply with the expectations.
During the week, the NZD was significantly affected by the economic situation in the country and quite an aggressive monetary policy led by RBNZ. On Wednesday, New Zealand released weak statistics. In particular, Unemployment Rate in the second quarter grew from 5.8% to 5.9%. Employment Change came lower than expected at 0.3%.
Support and resistance
Bollinger Bands on the daily chart is showing flat. Currently, the indicator is keeping a very weak “bullish” signal formed last Wednesday when the price broke though the lower border. A correction towards 0.6625-0.6650 is possible.
MACD is growing. The indicator is above the signal, giving a buy signal again. It suggests keeping and opening long positions in the short and very short run.
Stochastic is leaving the overbought zone. Short-term buy orders are quite relevant.
Support levels: 0.6534 (31 July low) and 0.6500 which is currently the main support level. This mark was actively tested on 16 July and 5 August, but the pair failed to consolidate below 0.6500.
Resistance levels: 0.6555 (the nearest mark; the pair is actively testing this level), 0.6600, 0.6653, 0.6694 (23 July local high), 0.6720, 0.6738(29 July local high) and 0.6770 (10July local high)
Open long positions when the price breaks through and rebounds from the level of 0.6555 (with appropriate indicators signals). Set take-profit at 0.6600 and stop-loss at 0.6500.
Open short positions if the level of 0.6534 is broken through with targets at 0.6500-0.6450 and stop-loss at 0.6570.