NZD/USD: pair is growing

Current trend

Today the pair is growing amid the publication of strong data in New Zealand. In April, Exports from the country grew from 4.2 billion to 4.3 billion New Zealand Dollars that was slightly better than forecasts of economists. In addition, the Trade Balance surplus increased to 292 million NZD, while exports expected the surplus to decline to 60 million NZD. At the same time, Imports slightly fell, from 4.09 billion to 4.01 billion NZD.

The pair, however, is still pressured by the strengthening US Dollar, which is supported by the expectations of monetary policy tightening in the US in the nearest future.

Support and resistance

Bollinger Bands on the daily chart is moving down while the price range is narrowing. MACD is trying to turn up having formed a buy signal. Stochastic turned up as well.

Support levels: 0.6746 (local low), 0.6715, 0.6700 (local low), 0.6667 (28 March low).
Resistance levels: 0.6780 (local high), 0.6800 (23 May high), 0.6823, 0.6847 (12 May high), 0.6873, 0.6900 (5 May high), 0.6934, 0.6965.

Trading tips

Long positions can be opened after the price consolidation above the level of 0.6800 (with the appropriate indicators signals) with targets at 0.6873, 0.6900 and stop-loss at 0.6750. Validity – 2-3 days.

Short positions can be opened after the price rebound from the level of 0.6800 with the target at 0.6700 and stop-loss at 0.6830. Validity – 2-3 days.