Current trend

Against unstable macroeconomic statistics from New Zealand, the NZD/USD pair is declining, trading at 0.6000.

Thus, Q4 gross domestic product (GDP) adjusted by –0.1% from –0.3% earlier due to weakening wholesale trade in food and alcoholic beverages, which has been showing negative dynamics for six months. Household spending during this period increased by 0.5%, largely due to higher prices for transportation, and GDP per capita changed by –0.7% after a reduction in spending on durable goods, gasoline and alcoholic beverages.

The American dollar is correcting at 103.80 in USDX, decreased slightly yesterday. Today, investors will pay attention to durable goods orders, which may strengthen from –6.1% to 1.2%, and the core indicator from –0.3% to 0.4%. The Conference Board’s consumer confidence index in March, according to preliminary estimates, will increase from 106.7 points to 106.9 points.

Support and resistance

The trading instrument is correcting downwards, located significantly below the support line of the ascending corridor with dynamic boundaries of 0.6230–0.6080.

Technical indicators are strengthening the sell signal: fast EMA on the Alligator indicator are below the signal line, expanding the range of fluctuations, and the AO histogram is forming downward bars in the negative zone.

Resistance levels: 0.6030, 0.6110.

Support levels: 0.5990, 0.5910.

Trading tips

Short positions may be opened after the price declines and consolidates below 0.5990, with the target at 0.5910. Stop loss – 0.6050. Implementation period: 7 days or more.

Long positions may be opened after the price rises and consolidates above 0.6030, with the target at 0.6110. Stop loss – 0.5990.