Current trend

The NZD/USD pair shows moderate growth, developing a strong "bullish" momentum, formed the day before. The instrument is testing the level of 0.6190 for a breakout, while there are no noticeable growth drivers. Some support for the US currency yesterday was provided by data on Dallas Fed Manufacturing Business Index. In June, the indicator showed an increase from -29.1 points to -23.2 points, while analysts had expected -26.5 points.

Investors are in no hurry to open new positions ahead of the speech of US Federal Reserve Chairman Jerome Powell, as well as the publication of updated data on the dynamics of the US Gross Domestic Product (GDP) on Thursday, June 29. The markets are afraid of the national economy plunging into recession; however, inflation risks are still in the focus of attention, as they directly affect the further monetary policy of the regulator.

On Thursday, June statistics will be presented on the ANZ Business Confidence, which may rise from -31.1 points to -28.1 points, as well as ANZ Activity Outlook, which assumes a decrease from -4.5% to -6.0%.

Support and resistance

Bollinger Bands on the daily chart show a steady increase. The price range is narrowing, reflecting the multidirectional nature of trading in the past few weeks. MACD is trying to reverse upwards keeping a previous sell signal (located below the signal line). Stochastic shows similar dynamics, reversing upwards near the level of "20".

The development of a full-fledged uptrend is possible in the short and/or ultra-short term.

Resistance levels: 0.6200, 0.6250, 0.6303, 0.6350.

Support levels: 0.6155, 0.6100, 0.6050, 0.6000.

Trading tips

Long positions can be opened after a breakout of 0.6200 with the target of 0.6303. Stop-loss — 0.6155. Implementation time: 2-3 days.

A rebound from 0.6200 as from resistance, followed by a breakdown of 0.6155 may become a signal for opening of new short positions with the target at 0.6050. Stop-loss — 0.6200