NZD/USD January 11 Analysis
Mayzus | Jan 11, 2018 07:19AM ET
Current trend
New Zealand dollar is growing against USD and it has renewed the 3-month maximum. Yesterday the NZD/USD pair grew by 0.48% due to the weakness of US dollar, caused by political tense and threats of trading war from China. According to Bloomberg, it is intended to decrease the volume of US bonds purchase rapidly, which can lead to the collapse of bond’s prices and fall of USD. The slowing of Import Prices growth in December did not support US dollar, as the indicator grew by 0.1% against the expected increase at least by 0.5%.
Today US Initial Jobless Claims release at 15:30 (GMT+2) and Monthly Budget Statement publication at 21:00 (GMT+2) are worth traders’ attention.
Support and resistance
On the daily chart, the pair is growing along the upper border of Bollinger Bands. MACD histogram is in the positive zone, keeping steady buy signal.
Resistance levels 0.7200, 0.7232, 0.7250, 0.7280.
Support levels: 0.7175, 0.7130, 0.7100, 0.7050.
Trading tips
Long positions can be opened at the current level with the target at 0.7250 and stop loss at 0.7160. Implementation period: 1–3 days.
Short positions can be opened at the level of 0.7130 with the target at 0.7075 and stop loss at 0.7160. Implementation period: 3–5 days.
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