Current trend

Against poor macroeconomic statistics in New Zealand, the NZD/USD pair is declining, trading around 0.6184.

According to a report from the National Statistical Office of New Zealand (Stats.nz), the number of building permits in June was 9.888K, which is 20.0% lower than in the same period a year earlier, while the number of individual houses reached 4.281K, and multi-family 5.607K, down 21.0% and 18.0%, respectively. The indicator decreased by 2.3% QoQ compared to the previous period. Yesterday’s business activity index increased by 0.8% in July, which is inferior to the increase of 2.7% earlier and puts pressure on the national currency.

Against a lack of key news, the US dollar strengthened to 101.700 in the USD Index. However, the JOLTS June report on the number of open vacancies in the labor market will be published tonight. According to analysts’ forecasts, the figure will decrease from 9.824M to 9.610M, harming the US currency. Also, July Institute of Supply Management (ISM) manufacturing business activity index may increase from 46.0 points to 46.8 points, and the manufacturing price index – from 41.8 points to 42.8 points.

Support and resistance

The trading instrument is correcting, forming a global downward corridor with dynamic boundaries 0.6370–0.5950.

Technical indicators gave a sell signal: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO histogram forms corrective bars in the sell zone, moving away from the transition level.

Resistance levels: 0.6250, 0.6380.

Support levels: 0.6150, 0.6030.

Trading tips

Short positions may be opened after the price drops and consolidates below 0.6150 with the target at 0.6030. Stop loss – 0.6220. Implementation period: 7 days or more.

Long positions may be opened after the price rises and consolidates above 0.6250 with the target at 0.6380. Stop loss – 0.6190.