Current dynamics

During the morning session, the NZD/USD pair is correcting near the 0.5890 level due to positive macroeconomic data from New Zealand and the decline in the value of the US dollar.

Thus, the producer selling price index in the third quarter accelerated from 1.1% to 1.5%, purchase prices — from 1.4% to 1.9%, and the capital goods price index added 0.1%. The only indicator that recorded a negative trend (a decrease of -0.2%) was the agricultural expenditure price index, but the decline in purchases of equipment and raw materials in the industry is also a positive factor.

The US dollar is falling at 106.10 in USDX on expectations of rising inflation, which may be caused by the import tariffs announced by the new US President Donald Trump, as well as the tax cut program, which is to be financed by the public debt. Investors are worried that the accelerating dynamics of consumer prices will force US Fed officials to abandon their dovish rhetoric, which will put pressure on the country's economy. Today at 15:30 (GMT 2) data on the volume of new home construction in October will be released: the indicator may fall from 1.354 million to 1.340 million, continuing the negative trend of the previous period, in which a change of -0.5% was recorded.

Support and resistance levels

The trading instrument is making a correction near the support line of the “expanding formation” with dynamic boundaries of 0.6460–0.5800.

Technical indicators are in a sell state: fast EMA on the Alligator indicator is moving away from the signal line, while the AO histogram is forming corrective bars below the crossover level.

Resistance levels: 0.5930, 0.6060.

Support levels: 0.5850, 0.5730.

Trading scenarios

Short positions can be opened after the price falls and stops below the level of 0.5850 with a target of 0.5730. Stop-loss - 0.5900. Execution time: 7 days and more.

Long positions can be opened after the price rises and stops above the level of 0.5930 with a target of 0.6060. Stop-loss — 0.5880.