Current trend

After reaching 0.6350, the NZD/USD pair corrected to 0.6185 amid macroeconomic data from New Zealand.

The Q2 terms of trade, a key indicator for assessing the economic condition of an export-oriented country, fell from 5.1% to 2.1% against forecasts of 2.6%. However, export prices within the indicator corrected from –0.3% to 5.2%, and import prices from –5.1% to 3.1% against forecasts of 2.8% and 0.5%, respectively, so the negative dynamics of the New Zealand dollar may stop near the nearest support level of 0.6185.

The trading instrument is moving in a long-term upward trend, renewing the high of 0.6299 from August 29 and starting a downward correction. Today, the price tested the support level of 0.6185. If it holds, an increase to the area of ​​0.6266 and the December high of 0.6351 may follow. In case of a breakdown of 0.6185, a correction to the area of ​​0.6079 is likely.

The medium-term trend is upward. In August, the quotes reached zone 3 (0.6283–0.6269), after which a correction began. If it continues, a test of the trend border of 0.6159–0.6145 may follow, and then, long positions, with the target at 0.6295, are relevant. In case of a breakdown of the support area of ​​0.6159–0.6145, the trend will reverse downwards, and the sell target will be zone 2 (0.6019–0.6005).

Support and resistance

Resistance levels: 0.6266, 0.6351.

Support levels: 0.6185, 0.6080, 0.5980.

Trading tips

Long positions may be opened from 0.6185, with the target at 0.6266 and stop loss 0.6155. Implementation period: 7–9 days.

Short positions may be opened below 0.6155, with the target at 0.6080 and stop loss 0.6185.