Technical Analytics Report

NZD/USD: Fundamental Analysis Report 06 May 2021

NZDUSD Fundamental Analysis Report 06 May 2021


The NZD/USD pair grows, trying to consolidate within an uptrend, and is currently trading near the level of 0.7211. 

New Zealand’s latest statistics have been very positive. Service PMI rose to 58.8 points, higher than analysts’ forecast of 58.6 points. The country’s Q1 unemployment rate fell to 4.7%, although analysts had expected a decline to 4.9%. The share of the economically active population increased from 70.20% to 70.40%, and the employment change rate increased by 0.6%, far exceeding the forecasts of 0.2%. Overall, New Zealand’s performance continues to improve, and the country may be the first to see a rate hike soon. 

The hopes of analysts and investors for the continued USD growth did not come true, and the USD Index stopped moving around 91.200, where it has been since the beginning of the week. US Treasury Secretary Janet Yellen has once again ruined investors’ hopes for a rate hike by the US Federal Reserve. She stated that she would not recommend the regulator change the existing indicators. At the same time, two days ago, the official stated the opposite, saying that the rate hike could act as an adequate response to the rise in inflation. 

Support and resistance 

Quotes move within the local upward correction. Technical indicators issued a new buy signal: fast EMAs on the Alligator indicator crossed the signal line upwards, and the AO oscillator histogram moved into the buy zone.

·         Resistance levels: 0.7237, 0.7332.

·         Support levels: 0.7188, 0.7115. 

Trading tips 

After growth or consolidates above the local resistance of 0.7237, buy positions with the target at 0.7332 are relevant. Stop loss – 0.7190. Implementation period: 5 days.

After reversal and decline or consolidation below the local support of 0.7188, sell positions with the target at 0.7115 are relevant. Stop loss – 0.7230. 

Scenario 

Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 0.7237

Take Profit: 0.7332

Stop Loss: 0.7190 

Key Levels: 0.7332, 0.7237, 0.7188, 0.7115 

Alternative Scenario 

Timeframe: Weekly 

Recommendation: Sell Stop

Entry Point: 0.7188

Take Profit: 0.7115 

Stop Loss: 0.7230 

Key Levels: 0.7332, 0.7237, 0.7188, 0.7115


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