This week, NZ dollar is trying to strengthen though the demand for the US currency is high as the Yuan turmoil is subsiding and quite positive macroeconomic statistics are released.
On Tuesday, NZ dollar was declining; the decline was more intense when the US released positive Building Permits data for July. However, later, GDT Price Index came at an unexpectedly high level (+14.8% vs. -9.3% earlier) and the currency managed to gain back most of its losses.
Support and resistance
Bollinger Bands on the daily chart are narrowing down and turning to sideways.
MACD is growing, keeping a relatively strong buy signal. The indicator recommends long positions in the short run.
Stochastic is trying to turn upwards. The indicator is near the overbought zone, thus, a steady growth should not be expected.
Support levels: 0.6555 (near 18 August low), 0.6534, 0.6500 and 0.6467 (12 August low).
Resistance levels: 0.6600 (the nearest mark), 0.6649 (12 August local high), 0.6694, 0.6720 and 0.6738 (29 July high).
Open long positions when the pair breaks through 0.6600 and rebounds from this level (with appropriate indicators signals). Set take-profit at 0.6649, 0.6694 and stop-loss at 0.6555, 0.6530.
Open short positions when the pair rebounds down from 0.6600 or consolidates below 0.6555. Set take-profit at 0.6500, 0.6467 and stop-loss not further than 0.6600.