Published On: Fri, Mar 3rd, 2017

NZD/USD: general review


Current trend

Donald Trump’s speech to US Congress, FOMC functionaries’ statements on tightening monetary policy, and yesterday’s positive data on labor market overshooting the forecast — all these events led to dollar growing rapidly against most majors and commodities. NZD/USD lost more than 200 points, going below 0.7050, and reaching 2-month maximum.

Today, we are waiting for more data from the USA. The PMI index for services sector is due at 16:45 GMT+2 (the outlook is slightly negative). Fed’s Stanley Fischer speech is due at 19:00 (GMT+2), and Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, will give a speech at 21:00 (GMT+2). If these speeches, especially Yellen’s, continue with statements on raising the interest rate, then there is high probability of further growth for US dollar — against New Zealand dollar as well.

Support and resistance 

Resistance levels: 0.7050, 0.7100, 0.7170, 0.7250, 0.7340.

Support levels: 0.6800, 0.6860, 0.6980.

Trading tips

Short positions with targets at 0.6980, 0.6860 and stop-loss at 0.7060 may be opened at market price.

In case of price going above 0.7100, the alternative scenario is possible: buy positions with targets at 0.7170, 0.7250 and stop-loss at 0.7050 could be opened. 

Forex Analysis

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