NZD/USD: general review

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Current trend

NZD against USD again rebounded from the upper border of the current downward channel and headed lower.

In early May, the pair was trading near the upper border of a wide downward channel, but this week, it went down due to the growth of USD amid increased demand. The breakdown of the key support level of 0.6570 may indicate the prospect of a decline to new lows. An additional catalyst for the fall is the excessively soft monetary policy of the RBNZ. The US dollar strengthens even in the situation of weak statistics on key sectors of the economy, which indicates high interest from investors.

Today and at the end of the week, a number of key releases will come in the USA. Data on industrial output and retail sales will be published today, and data on the labor market - on Thursday and Friday.

Support and resistance

Perhaps, comments on a possible next increase in the key rate strengthen USD, although this is unlikely to happen in the near future, given the data on inflation and the labor market. Technically, the pair forms a new descending wave, the probability of keeping the downward impulse is high. In the near future, the instrument may reach 0.6525, 0.6500, and then 0.6420 (the key support level and the local minimum of October).

Technical indicators on the H4  chart and above confirm the decline forecast: MACD indicates the growth of the volume of short positions, and Bollinger Bands are pointing downwards.

Support levels: 0.6545, 0.6525, 0.6500, 0.6420, 0.6350, 0.6330.

Resistance levels: 0.6570, 0.6580, 0.6600, 0.6650, 0.6695, 0.6770, 0.6790, 0.6850.

Trading tips

Short positions may be opened from the current level with the target at 0.6500 (0.6420 in the medium term) and stop loss at 0.6630.

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