Current trend

Last week, the NZD/USD pair returned to the support level of 0.5988 and today is preparing to continue the uptrend with the target of 0.6085, which is supported by positive data on the New Zealand economy.

The volume of construction permits in February amounted to 14.9%, which turned out to be significantly higher than the forecast of 4.1%, while the previous value was adjusted from -8.8% to -8.6%. In turn, the Caixin business activity index in the manufacturing sector in March rose from 50.9 points to 51.5 points, and in the services sector — from 52.5 points to 52.7 points, acting as a driver of local growth of the instrument.

The long-term trend remains downward: last week, traders broke through the support level of 0.5988, and then the price returned to this mark. Therefore, buyers can expect an upward correction with the target at the resistance level of 0.6085, from which they can consider selling the instrument with the target of 0.5988. If the 0.5988 mark is broken down, the movement will continue to the area of 0.5945.

The medium-term trend is downward: last week, the market participants reached the target zone 3 (0.5949–0.5935), which was held by buyers, which led to an upward price correction. If it continues this week, one can expect a test of the key trend resistance of 0.6096–0.6082, after which one can again consider selling with the target of 0.5944. If zone 3 is broken down during trading, then the movement will continue to the area of 0.5809–0.5795.

Support and resistance

Resistance levels: 0.6085, 0.6205.

Support levels: 0.5988, 0.5945, 0.5865.

Trading tips

Long positions can be opened from the 0.5988 mark with the target of 0.6085 and stop-loss of 0.5958. Implementation period: 9–12 days.

Short positions can be opened below the level of 0.5958 with the target of 0.5865 and stop-loss of 0.6000.