During the Asian session, the NZD/USD pair is developing the “bullish” signal formed yesterday and is testing the level of 0.6450 for a breakout, renewing local highs from December 15, which is practically not hindered by attempts to grow the US currency.
Investors shrugged off December macro data from New Zealand on e-card retail sales, which showed a –2.5% MoM correction after a 0.3% rise, although analysts had expected –0.8% and from 7.1% to 4.8% YoY with a forecast of 10.8%. In December, the housing price index from the Real Estate Institute of New Zealand (REINZ) fell by another 2.5%, continuing its negative trend from –1.4%.
The daily chart shows Bollinger bands are growing moderately: the price range expands but not as fast as the “bullish” activity develops. The MACD indicator rises, keeping a relatively strong buy signal (the histogram is above the signal line). Stochastic reversed upwards after a short decline at the end of last week but is near its highs, indicating that the New Zealand dollar may become overbought in the ultra-short term.
Resistance levels: 0.6450, 0.6500, 0.6535, 0.6600. | Support levels: 0.6400, 0.6350, 0.6288, 0.6250.