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NZDUSD Corrective Growth may Continue

10/28/2022 2:13 PM

As a result of the correction for the USD, the resistance level of 0.5800 was broken out by the "bulls" this week, which suggests a further growth of the NZD/USD pair to the area of 0.5950.

The quotes of the US currency declined as a result of the release of contradictory statistics. On the one hand, the gross domestic product (GDP) for Q3 turned out to be better than expected and amounted to 2.6% against the forecast of 2.4%, and on the other hand, basic orders for durable goods decreased by 0.5% in September, while the volume of orders for durable goods increased by 0.4% against the expected 0.6%.

In New Zealand, almost no noteworthy data was released this week, so investors expect the publication of statistics on changes in employment and the unemployment rate next Wednesday, November 2. If the indicators come out better than forecasts, this can push the NZD/USD pair to the area of 0.5900 and higher in the mid-term.

The long-term trend is downward, but at the moment an upward correction is developing. The trend boundary runs around the 0.6100 mark, below which there is another significant resistance level of 0.5950. After the 0.5775 mark was broken out this week, the target of the upward correction became the 0.5950 mark.

The mid-term trend changed to an upward trend last week. As a result of trading this week, the target zone 2 (0.5806–0.5792) was reached, above which buyers are trying to consolidate today. If the trading week closes above the 0.5806 level, then the next target for purchases will be target zone 3 (0.5946–0.5932). The key support for the mid-term trend is shifting to the levels of 0.5733-0.5719. When the price is corrected to this area, it will be possible to consider new long positions with a target at the current week's maximum of 0.5870.

Resistance levels: 0.5950, 0.6100. | Support levels: 0.5750, 0.5600, 0.5550.

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