Current trend

The NZD/USD pair is testing 0.5950 for a breakout, reacting to a sharp increase in corrective sentiment for the US dollar ahead of the publication of macroeconomic statistics on the national labor market.

It is worth noting that the data presented the day before from Automatic Data Processing (ADP) somewhat lowered expectations regarding the September report from the US Bureau of Labor Statistics, which ultimately had a negative impact on the exchange rate of the American currency. Thus, Employment Change added only 89.0 thousand after 180.0 thousand in the previous month, which turned out to be significantly lower than forecasts of 153.0 thousand.

Yesterday, investors also focused on the results of the meeting of the Reserve Bank of New Zealand (RBNZ). As expected, the regulator kept the interest rate at 5.50%, noting that it still expects the effect of previously taken measures aimed at tightening monetary policy. In general, officials do not exclude the possibility of a further increase in borrowing costs, but everything will depend on macroeconomic data.

Support and resistance

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is slightly narrowing from below, reflecting the emergence of ambiguous dynamics of trading in the short or ultra-short term. MACD has reversed upwards preserving a sell signal (located below the signal line). Stochastic, having rebounded from the level of "20", reversed towards growth, signaling in favor of the development of corrective growth in the near future.

Resistance levels: 0.5950, 0.5976, 0.6000, 0.6030.

Support levels: 0.5934, 0.5920, 0.5900, 0.5879.

Trading tips

Long positions can be opened after a breakout of 0.5950 with the target of 0.5976. Stop-loss — 0.5934. Implementation time: 1-2 days.

A rebound from 0.5950 as from resistance, followed by a breakdown of 0.5934 may become a signal for opening of new short positions with the target at 0.5900. Stop-loss — 0.5950.