The NZD / USD started the final trading session of the week with a slight strengthening, regaining the losses of yesterday’s decline caused by the release of strong statistics from the US labor market. The number of applications for unemployment benefits in the United States has dropped to the level of the beginning of the pandemic. This could have an impact on the outlook for the Fed’s monetary policy.
Today the pair is supported by the statistics of New Zealand. Here came the report of expenses on credit cards, which showed an increase of 2.2%. This indicator demonstrates the growth of consumer activity and influences the assessment of inflation expectations.
The Bollinger Bands indicator on the chart of the daily formation remains in a phase of active growth with a slight expansion in the upper part.
The MACD indicator continues to rise in the positive area and maintains a weak buy signal.
The stochastic oscillator has come out of the overbought zone and is steadily declining.
After the breakout above 0.7200, we proceed to buy with a take profit of 0.7305. Stop loss is set at 0.7150.
In case of a breakdown below 0.7150, selling of the pair becomes relevant with the target at 0.7050. Set the protective order at 0.7200.