Current trend
This Wednesday the pair NZD/USD has lost more than 100 points due to the USA FRS decision. Federal Reserve announced further reduction of QE3 program by 10 billion dollars. Moreover, Janet Yellen's speech made investors believe, that QE3 will be closed by the end of the year and next year regulator will raise interest rate. NZD is also under pressure of negative GDP stats: the indicator went down to the level 0.9%.
Support and resistance
The pair is being corrected to the middle MA of Bollinger Bands indicator (0.8580). The breakdown of this level will allow the pair to go up to the levels of 0.8606 and 0.8645. Otherwise the price will fall to the levels of 0.8515, 0.8490 and 0.8455. Technical indicators don’t give clear signals. MACD histogram is going to cross zero line from above and give a signal to sell. Stochastic lines are in oversold zone, but can soon cross and give a signal to buy.
Tradingtips
It is recommended to open long trades at current price with targets at 0.8580. At the same level pending sell orders with take profits at 0.8490 can be placed.
Dmitriy Zolotov
Analyst of LiteForex group of Companies
