Technical analysis of NZD/USD for May 30, 2018

analytics5b0eae5d64744.png

NZD/USD is expected to continue its upside movement. The pair stands firmly above its horizontal support at 0.6925, representing a psychological level. A new rebound seems more likely to occur, as the rising 50-period moving average acts well as a support role, and should continue to push the prices higher. Last but not least, the relative strength index is turning up, and calls for a new upleg. Therefore, above 0.6925, look for 0.7005 and 0.7030 in extension.

Fundamental outlook:

New Zealand residential-building consents fell a less-than-thought 3.7% in April which followed March's 13% jump. Apartment consents remained at a relatively high level last month and there was also a lift in townhouses. Westpac expects home building activity to continue rising at a gradual pace as skilled-labor shortages, rising building costs and difficulties accessing finance are significant barriers to growth and are unlikely to be alleviated quickly.

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7005, 0.7030, and 0.7075

Support levels: 0.6900, 0.6880, and 0.6835

The material has been provided by InstaForex Company - www.instaforex.com