Technical Analytics Report

NZD/USD: Technical Analysis Report 23 Feb 2021


The NZD/USD pair leaves the sideways movement, breaking the level of 0.7300.

 NZD is supported by the rise in oil price, which renewed the last week’s high. WTI Crude Oil futures are currently trading at 62.61. If the growth continues, then oil may overcome the level of $65 per barrel soon, and the pair will reach 0.7500. The S&P rating agency raised New Zealand’s credit rating from AA to AA+ with a stable outlook, explaining this decision by the fact that the country is more successful in containing the coronavirus epidemic than other developed countries. Its credit indicators are expected to recover in the next few years, federal and local budget deficits will decline, and real GDP will rise by 3.2% over 2022–2024.

 USD is under pressure from the growth of Treasury bonds’ yield. The 10-year bonds are currently trading at 1.369 and may hit 1.4. American stock indices are recovering after last week’s decrease. The S&P 500 is trading near the level of 3900. Investors still prefer the stock market to the dollar.

 Today at 17:00 (GMT+2), US Fed Chairman Jerome Powell will present the semi-annual monetary policy report, after which he will answer questions from members of the House of Representatives. It is expected that the regulator will continue to adhere to the scheme offering extraordinary monetary policy stimulus and encouraging fiscal support.

 Support And Resistance:

The price has broken through the resistance level of 0.7300 and is now trying to consolidate above it, after which, it may grow to 0.7500.

 In the margin zones, the mid-term trend changed to an upward one. The rate has broken the resistance level of 0.7250. The next target is target zone 2 (0.7400–0.7386). The key support zone is 0.7198–0.7183.

 Resistance Levels: 0.7300, 0.7400, 0.7500.

Support Levels: 0.7250, 0.7183, 0.7038.

 Trading Tips:

Long positions may be opened from 0.7250 with the target at 0.7400 and stop loss 0.7200. Implementation period: 5–7 days.

Short positions may be opened below 0.7183 with the target at 0.7038 and stop loss 0.7250.

 Scenario:

Timeframe: Weekly

Recommendation: Buy Limit

Entry Point: 0.7250

Take Profit: 0.7400

Stop Loss: 0.7200

Key Levels: 0.7038, 0.7183, 0.7250, 0.7300, 0.7400, 0.7500

 Alternative Scenario:

Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 0.7180

Take Profit: 0.7038

Stop Loss: 0.7250

Key Levels: 0.7038, 0.7183, 0.7250, 0.7300, 0.7400, 0.7500


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