Current trend

The NZD/USD pair is showing slight upward dynamics, developing the moderate "bullish" momentum formed the day before. The instrument is testing the level of 0.5920 for a breakout, waiting for new growth drivers to appear.

Investors are focusing on the rhetoric of the monetary authorities of the US Federal Reserve, the Bank of England, the Swiss National Bank, and the Bank of Japan. At the same time, only the British regulator is expected to further increase the interest rate, while others can limit themselves to only signaling in favor of a possible tightening of monetary policy in the near future. On Wednesday there will also be a meeting of the People's Bank of China, which may announce new measures to support the national economy. In August, financial authorities lowered borrowing costs by 10 basis points to 3.45%.

On Thursday, New Zealand will present updated statistics on the dynamics of Gross Domestic Product (GDP) for the second quarter. The previous estimate suggests a decrease of 0.1% in quarterly terms, and an increase of 2.2% in annual terms.

Support and resistance

Bollinger Bands in D1 chart demonstrate an unsteady decrease. The price range is narrowing, reflecting the emergence of multidirectional trading dynamics in the near future. MACD indicator is growing, while preserving a rather stable buy signal (located above the signal line). Stochastic reversed horizontally after a short decline, reacting to the appearance of "bullish" dynamics at the beginning of this week. In addition, the indicator is currently located approximately in the center of its area.

Resistance levels: 0.5943, 0.5976, 0.6000, 0.6033.

Support levels: 0.5900, 0.5879, 0.5858, 0.5830.

Trading tips

Long positions can be opened after a breakout of 0.5943 with the target of 0.6000. Stop-loss — 0.5915. Implementation time: 2-3 days.

The return of a "bearish" trend with the breakdown of 0.5900 may become a signal for new short positions with the target at 0.5858. Stop-loss — 0.5925.