Current trend

The New Zealand dollar continues to lose positions in the NZD/USD pair against the strengthening of the US currency, currently holding at 0.6084.

Employment in key sectors of the New Zealand economy in May increased by 0.2% to 2.37M jobs, however, commodity companies adjusted the number of staff by –1.7% or 1.828K jobs, while in the service sector, the indicator added 0.3% or 6.036K vacancies, and in the production of goods – 0.2% or 0.833K jobs. In June, local positive dynamics may continue, which is indirectly indicated by today’s data from the Australian and New Zealand banking group ANZ on the index of confidence in the economy in business circles, which rose to –18.0 points from –31.1 points earlier.

The US dollar strengthened slightly, reaching 102.800 in the USD Index, which is better than the average values at the beginning of the week. Today are expected to publish reports on gross domestic product (GDP) and employment in the US. Analysts expect the Q1 economy to slow from 2.6% to 1.4% amid poor labor and real estate markets. Thus, the initial jobless claims may grow from 264.0K to 266.0K, affecting the national currency negatively.

Support and resistance

The trading instrument is correcting, forming a global downward corridor with dynamic boundaries 0.6300–0.5940.

Technical indicators gave a sell signal: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO histogram forms corrective bars in the sell zone, moving away from the transition level.

Resistance levels: 0.6120, 0.6240.

Support levels: 0.6030, 0.5900.

Trading tips

Short positions may be opened after the price drops and consolidates below 0.6030 with the target at 0.5900. Stop loss – 0.6100. Implementation period: 7 days or more.

Long positions may be opened after the price rises and consolidates above 0.6120 with the target at 0.6240. Stop loss – 0.6050.