Technical Analytics Report

NZDUSD Fundamental Analysis Report 30 March 2021

NZD/USD: Fundamental Analysis Report 30 March 2021

 Current trend: the instrument wins back its losses.

NZD has shown strong gains against USD during today’s Asian session, building on the corrective momentum that formed late last week when the instrument managed to retreat from its record lows. The pair adds about 0.41% and is actively testing the level of 0.7030 for a breakout.

 The active growth of the instrument proceeds against the background of the publication of weak macroeconomic statistics from New Zealand. The number of building permits issued in the country fell sharply in February by 18.2% MoM after rising by 1.5% MoM.

 At the same time, data from the US, which was published on Monday, still provide moderate support to USD. Dallas Fed Manufacturing Business Index in March increased from 17.2 to 28.9 points against the forecast of a decline to 12.1 points.

 Support and Resistance

Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is slightly expanded from below, remaining spacious enough for the current activity level in the market. MACD has reversed to growth having formed a new buy signal (located above the signal line). Having retreated from its lows, Stochastic maintains a confident upward direction, signaling in favor of the development of “bullish” trend in the ultra-short term.

 Current showings of the indicators do not contradict the further development of the uptrend in the short term.

 Resistance levels: 0.7050, 0.7100, 0.7150, 0.7200.

Support levels: 0.7000, 0.6954, 0.6913, 0.6853.

 Trading Tips

·         To open long positions, one can rely on the breakout of 0.7050. Take-profit – 0.7150. Stop-loss – 0.7000. Implementation time: 2-3 days.

·         A rebound from 0.7050 as from resistance, followed by a breakdown of 0.7000 may become a signal for new sales with the target at 0.6913. Stop-loss – 0.7050.

 Scenario

Timeframe: Intraday

Recommendation: Buy Stop

Entry Point: 0.7055

Take Profit: 0.7150

Stop Loss: 0.7000

Key Levels: 0.6853, 0.6913, 0.6954, 0.7000, 0.7050, 0.7100, 0.7150, 0.7200

 Alternative Scenario

Timeframe: Intraday

Recommendation: Sell Stop

Entry Point: 0.6995

Take Profit: 0.6913

Stop Loss: 0.7050

Key Levels: 0.6853, 0.6913, 0.6954, 0.7000, 0.7050, 0.7100, 0.7150, 0.7200


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