Against the background of the weakening of the US dollar since the beginning of October, the NZD / USD pair is in an upward correction after a strong fall from mid-April and the level of 0.7380.
Having pushed off from the support level of 0.6430, the NZD / USD pair was able to grow by almost 400 points. The upward correction was stopped last Wednesday at a key resistance level of 0.6810 (ЕМА200 on the daily chart).
Following the two-day meeting, the Fed decided to keep the current interest rate at 2.25%. The decision of the Fed was published on Thursday (19:00 GMT). In a statement, Fed officials confirmed their plans to further increase the interest rate. Market participants expect a rate hike at the December Fed meeting (12/19/2018).
The US dollar strengthened after the publication of the Fed statement. On Friday, the dollar continued to grow, while the NZD / USD pair slightly decreased, finding support at 0.6740 (ЕМА144 on the daily chart).
Breakdown of this support level may provoke a decline to the support level 0.6610 (ЕМА200 on 4-hour chart). A decline below the support level of 0.6610 will mean a resumption of the bearish trend.
Only a rise to the zone above the resistance level of 0.6800 (Fibonacci level 23.6% of the upward correction to the global wave of the pair's decline from the level of 0.8800, started in July 2014; the wave minima are near the level of 0.6260) will mean a break of the bearish NZD / USD trend.
Below the support level of 0.6682 (ЕМА200 on the 1-hour chart) short positions again become preferable.
*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics
Support levels: 0.6740, 0.6682, 0.6610,
0.6515, 0.6430
Resistance levels: 0.6810, 0.6860
Trading Scenarios
Sell Stop 0.6710. Stop Loss 0.6820. Take-Profit 0.6682, 0.6610, 0.6515, 0.6430
Buy Stop 0.6820. Stop Loss 0.6710. Take-Profit 0.6860, 0.6900
*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com
