Current trend

The NZD/USD pair is developing corrective dynamics, recovering from a sharp decline in the instrument last Wednesday and testing the level of 0.6085 for a breakout. The instrument is supported by macroeconomic data from New Zealand and China.

The level of Consumer Confidence in New Zealand, according to data from the ANZ banking group, rose from 79.2 points to 85.5 points in June, which turned out to be better than the average analysts' forecasts. Chinese data showed an increase in the Manufacturing PMI from the National Bureau of Statistics (NBS) in June from 48.8 points to 49.0 points, which fully met market expectations, while the Services PMI fell from 54.5 points to 53.2 points, while the market expected a value of 50.8 points.

The American currency, in turn, received support after yesterday's publication of data on the dynamics of the US Gross Domestic Product (GDP) for the first quarter: the final estimate indicated an economic growth of 2.0%, which turned out to be significantly higher than the previous data at the level of 1.3%. Today, the focus of investors will be May statistics on financial flows: experts expect a sharp slowdown in costs from 0.8% to 0.2% while maintaining income at 0.4%.

Support and resistance

On the D1 chart Bollinger Bands are reversing into the descending plane. The price range is expanding, signaling an increase in trading volatility in the last week. MACD is trying to reverse into an ascending plane keeping its previous sell signal (located below the signal line). Stochastic, having dropped below the level of "20", reversed into a horizontal plane, indicating the risks of the instrument being oversold in the ultra-short term.

Resistance levels: 0.6100, 0.6132, 0.6155, 0.6200.

Support levels: 0.6050, 0.6000, 0.5941, 0.5900.

Trading tips

Long positions can be opened after a breakout of 0.6100 with the target of 0.6200. Stop-loss — 0.6050. Implementation time: 2-3 days.

A rebound from 0.6100 as from resistance, followed by a breakdown of 0.6050 may become a signal for opening of new short positions with the target at 0.5941. Stop-loss — 0.6100.