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NZDUSD Correction After Active Growth

11/28/2022 1:41 PM

Last week, the NZD/USD pair reached 0.6289 as a result of an interest rate increase by the Reserve Bank of New Zealand (RBNZ) to the level of 4.25%, but after that a downward correction began, which is due to the publication of macroeconomic statistics: retail sales for Q3 amounted to 0.4%, which is lower than the forecast of 0.5%, but higher than the previous one values -2.3%. The officials stressed that they closely monitor the dynamics of macroeconomic indicators and take these changes into account in making decisions regarding monetary policy.

Nevertheless, the long-term trend in the NZD/USD pair remains upward. Last week, the trading participants broke out the resistance level of 0.6200, and the next target for purchases is the 0.6300 mark. Now the instrument is correcting and approaching the support level of 0.6085, if it is held by buyers, then it is worth considering long positions with a target at 0.6300. In case of a breakdown of the 0.6300 level, the pair is likely to continue correction with a target at 0.6085.

The mid-term trend is upward. Last week, bidders broke out the target zone of 0.6226–0.6212, and the next target for purchases is the area of 0.6366–0.6352. At the moment, we can observe a downward correction, the possible target of which is a test of key support 0.6109–0.6091, after which it is worth considering new long positions in the asset with a target at last week's maximum of 0.6285.

Resistance levels: 0.6300, 0.6460. | Support levels: 0.6185, 0.6085, 0.5985.

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