Technical Analytics Report

NZD/USD: Fundamental Analysis 15 March 2021

NZD/USD: Fundamental Analysis 15 March 2021

Current Trend

The NZD/USD pair is trading within an uptrend, quickly regaining its Friday’s losses as the US dollar rallied amid rising US Treasury yields. At the beginning of the week, the instrument is supported by the positive sentiment in the market. Investors are positive about the prospects for vaccination campaigns, expecting that many countries will soon remove most of the current restrictions on the movement of citizens and the work of small and medium-sized businesses.

 The New Zealand currency is positively influenced by strong data from China. PRC industrial production for January increased by 35.1% YoY after growing by 7.3% for the previous month. Analysts had expected the index to rise by 30% YoY. The volume of retail sales for the same period increased by 33.8% YoY versus the previous indicator of 4.6% YoY, which was better than the optimistic forecasts of 32% YoY.

 Support and Resistance

 On the daily chart, Bollinger bands are actively declining. The price range is narrowing sharply, indicating an ambiguous nature of trading in the next time intervals. The MACD indicator is growing, maintaining a poor buy signal (the histogram is above the signal line). Stochastic, having approached the level of 80, reversed into a downward plane, reacting to the Friday’s decline in the instrument.

 Resistance levels: 0.7250, 0.7305, 0.7350, 0.7393.

Support levels: 0.7200, 0.7150, 0.7100, 0.7050.

 Trading Tips

 Long positions may be opened after the breakout of the level of 0.7250 with the target at 0.7350. Stop loss – 0.7200. Implementation period: 2–3 days.

 Short positions may be opened after the breakdown of the level of 0.7150 with the target at 0.7050. Stop loss – 0.7200.

 Scenario

 Timeframe: Intraday

Recommendation: Buy Stop

Entry Point: 0.7255

Take Profit: 0.7350

Stop Loss: 0.7200

Key Levels: 0.7050, 0.7100, 0.7150, 0.7200, 0.7250, 0.7305, 0.7350, 0.7393

 Alternative Scenario 

Timeframe: Intraday

Recommendation: Sell Stop

Entry Point: 0.7145

Take Profit: 0.7050

Stop Loss: 0.7200

Key Levels: 0.7050, 0.7100, 0.7150, 0.7200, 0.7250, 0.7305, 0.7350, 0.7393 


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