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NZDUSD Consolidation at Local Highs

11/21/2022 12:00 PM

The New Zealand dollar shows a slight decrease, testing the level of 0.6120 for a breakdown. The NZD/USD pair is once again trying to reverse to the downside after mostly flat trading last week. The US currency is supported by growing expectations regarding the continuation of the policy of high rates by the US Federal Reserve, especially after the "hawkish" comments from a number of representatives of the regulator, in particular, the President of the Federal Reserve Bank (FRB) of St. Louis James Bullard, who is known for his tight views on monetary policy.

Today, the instrument is moderately supported by macroeconomic statistics from New Zealand. Credit Card Spending rose 24.8% in October after rising 34.1% in the previous month, while analysts had expected 5.3%. Towards the end of today's trading session, markets are looking forward to the release of October data on the dynamics of Imports and Exports, as well as data on the Trade Balance. Current projections suggest that New Zealand's budget deficit will widen from -11.95 billion dollars to -12.52 billion dollars. On Wednesday, November 23, traders are waiting for the publication of the results of the meeting of the Reserve Bank of New Zealand (RBNZ). Investors are expecting another 75 basis point hike to 4.25%.

Bollinger Bands on the daily chart show a steady increase. The price range is narrowing from above, limiting the development of "bullish" trend in the short term. MACD indicator tries to reverse downwards and is about to form a new sell signal (the histogram is about to consolidate below the signal line). Stochastic shows a more confident decline, quickly retreating from its highs. The current readings of the indicator signal in favor of the development of "bearish" trend in the near future.

Resistance levels: 0.6155, 0.6200, 0.6250, 0.6300. | Support levels: 0.6100, 0.6050, 0.6000, 0.5941.

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