Current trend

The NZD/USD pair is showing a moderate decline, correcting after an attempt to rise the day before, which led to the price retreating from the local lows of May 30. The instrument is testing 0.6130 for a breakdown, while traders are waiting for new drivers of movement. Data from New Zealand exerted some pressure on quotes on Wednesday: the Current Account - GDP Ratio fell by 6.8% in the first quarter after –6.9% in the previous period, and the balance of payments deficit decreased from –7.975 billion dollars to –4.359 billion dollars.

The main trading floors in the United States are closed today due to the celebration of Emancipation Day, so the attention of trading participants is gradually moving to the trading session on Thursday, when updated GDP data for the first quarter will arrive on the market in New Zealand: analysts expect zero dynamics in quarterly terms and weak growth of 0.2% year-on-year. In the US tomorrow, statistics on the housing market and the jobless claims will be published. It is predicted that the Housing Starts will increase from 1.36 million to 1.38 million, Initial Jobless Claims will decrease from 242.0 thousand to 235.0 thousand, and Continuing Jobless Claims for the week ended June 7 may decrease from 1.82 million to 1.81 million.

Support and resistance

On the D1 chart Bollinger Bands are trying to reverse horizontally. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic, approaching the level of "20", reversed horizontally, indicating the predominance of mixed trading at the beginning of the week.

Resistance levels: 0.6152, 0.6175, 0.6200, 0.6221.

Support levels: 0.6130, 0.6100, 0.6082, 0.6047.

Trading tips

Short positions may be opened after a breakdown of 0.6130 with the target at 0.6082. Stop-loss — 0.6152. Implementation time: 1-2 days.

The return of the "bullish" trend with the breakout of 0.6152 may become a signal for new purchases with the target of 0.6200. Stop-loss — 0.6130.