The pair continues growing amid significant weakening in the US Dollar. The American currency was pressured by poor data on Retail Sales and the GDP for the second quarter of the year. In addition, today’s data on the Consumer Price Index showed a zero inflation growth in July, which increased pressure on the Dollar due to falling probability of monetary policy tightening by the Fed until the end of the year.
Tomorrow attention needs to be paid to data on the labour market and Producer Price Indices in New Zealand, and to the FOMC Minutes in the US.
Support and resistance
In the medium-term, the pair is expected to continue growing towards the key resistance level at 0.7330, a breakout of which would open the way towards the levels of 0.7600, 0.7625.
Technical indicators suggest a growth continuation. MACD histogram is in the positive zone and its volumes are growing. Bollinger bands are directed up.
Support levels: 0.7230, 0.7175, 0.7150, 0.7020, 0.7000, 0.6955, 0.6900, 0.6750.
Resistance levels: 0.7300, 0.7330, 0.7415, 0.7450, 0.7500, 0.7565, 0.7600, 0.7625.
Long positions can be opened from current levels and from the levels of 0.7230, 0.7175 with the target at 0.7600 and stop-loss at 0.7135.