As we noted in our Fundamental Analysis today, NZD/USD remains in the long-term bear market zone below the key resistance levels 0.6320, 0.6265. Only their breakdown will bring the pair back into the zone of a long-term bull market.
In the main scenario, we expect the decline to resume. A signal for building up short positions will be a breakdown of support levels 0.5781, 0.5758. In general, the downward dynamics of NZD/USD prevails.
Tomorrow (at 21:45) the New Zealand Bureau of Statistics will publish a report with important data on the state of the labor market, which are of critical importance (along with data on GDP and inflation) for the country’s central bank when deciding on the parameters of the current monetary policy (more see Key economic events of the week 10/31/2022 – 11/06/2022).
And today, the volatility in the NZD/USD pair may increase again at 13:45 (GMT), which will be associated with the publication of macro statistics for the US (Chicago PMI business activity index).
Support levels: 0.5781, 0.5758, 0.5600, 0.5565, 0.5512, 0.5470
Resistance levels: 0.5800, 0.5850, 0.6065, 0.6145, 0.6265, 0.6320
