Current trend

During the Asian session, the NZD/USD pair is growing moderately, restoring the positions lost yesterday and retreating from the local lows of December 21.

Positive dynamics are developing against technical factors, while the macroeconomic background remains ambiguous, and the market volatility is low. The price is moderately supported by macroeconomic statistics from China: December services PMI increased from 50.2 points to 50.4 points, less than the predicted 50.5 points, and Caixin manufacturing PMI increased from 50.7 points to 50.8 points, better than expectations of a decline to 50.4 points. Meanwhile, the US S&P Global manufacturing PMI corrected from 48.2 points to 47.9 points in December, worse than analysts’ neutral forecasts.

Today, American data manufacturing PMI from the Institute for Supply Management (ISM) and the December minutes of the US Federal Reserve meeting will be published, which may clarify the regulator’s plans regarding the prospects for lowering interest rates this year: experts expect the officials to switch to the “dovish” monetary policy, which puts the greatest pressure on the dollar.

Support and resistance

On the daily chart, Bollinger Bands are rising moderately as the price range narrows, reflecting ambiguous trading in the short term. The MACD indicator is declining, maintaining a relatively strong sell signal (the histogram is below the signal line). Stochastic shows a more confident decline but is currently approaching its lows, indicating that the instrument may become oversold in the ultra-short term.

Resistance levels: 0.6303, 0.6350, 0.6400, 0.6450.

Support levels: 0.6250, 0.6211, 0.6183, 0.6155.

Trading tips

Short positions may be opened after a breakdown of 0.6250 with the target at 0.6155. Stop loss – 0.6303. Implementation time: 2–3 days.

Long positions may be opened after a rebound from 0.6250 and a breakout of 0.6303 with the target at 0.6400. Stop loss – 0.6250.