NZD/USD: general review
22 August 2018, 12:21
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 0.6720 |
| Take Profit | 0.6800 |
| Stop Loss | 0.6684 |
| Key Levels | 0.6544, 0.6574, 0.6612, 0.6645, 0.6684, 0.6719, 0.6745, 0.6761, 0.6806, 0.6847 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 0.6640 |
| Take Profit | 0.6580 |
| Stop Loss | 0.6670 |
| Key Levels | 0.6544, 0.6574, 0.6612, 0.6645, 0.6684, 0.6719, 0.6745, 0.6761, 0.6806, 0.6847 |
Current trend
The New Zealand dollar strengthened yesterday against the US one despite a decline by 3.6% in the index for dairy products, one of the key spheres of the country's economy, which can bear adverse consequences.
On Tuesday, investors were focused on the comments of US President Donald Trump, who again expressed dissatisfaction with the monetary policy of the Fed. Trump also once again accused China of manipulating the national currency, which is not the best start for the beginning of the US-China trade talks. Great results are not expected, but the market keeps hope for the best.
Today, NZD strengthened in view of growth in retail sales by 1.1% in Q2. The index, which is considered an indicator of consumer spending, was above the forecast. Today, investors will focus on the publication of the FOMC minutes (20:00 GMT+2), high volatility is expected on the market.
Support and resistance
On the H4 chart, a correction of upward movement is observed, the pair is traded near the upper border of Bollinger Bands, the price range is widened. MACD histogram is in the positive area; the signal line is crossing the zero mark and the body of the histogram from below giving a signal for opening long positions.
Support levels: 0.6684, 0.6645, 0.6612, 0.6574, 0.6544.
Resistance levels: 0.6719, 0.6745, 0.6761, 0.6806, 0.6847.
Trading tips
Long positions may be opened from the level of 0.6720 with the target at 0.6800 and stop loss at 0.6684.
Short positions may be opened from the level of 0.6640 with the target at 0.6580 and stop loss at 0.6670.
Implementation time: 1-3 days.
The New Zealand dollar strengthened yesterday against the US one despite a decline by 3.6% in the index for dairy products, one of the key spheres of the country's economy, which can bear adverse consequences.
On Tuesday, investors were focused on the comments of US President Donald Trump, who again expressed dissatisfaction with the monetary policy of the Fed. Trump also once again accused China of manipulating the national currency, which is not the best start for the beginning of the US-China trade talks. Great results are not expected, but the market keeps hope for the best.
Today, NZD strengthened in view of growth in retail sales by 1.1% in Q2. The index, which is considered an indicator of consumer spending, was above the forecast. Today, investors will focus on the publication of the FOMC minutes (20:00 GMT+2), high volatility is expected on the market.
Support and resistance
On the H4 chart, a correction of upward movement is observed, the pair is traded near the upper border of Bollinger Bands, the price range is widened. MACD histogram is in the positive area; the signal line is crossing the zero mark and the body of the histogram from below giving a signal for opening long positions.
Support levels: 0.6684, 0.6645, 0.6612, 0.6574, 0.6544.
Resistance levels: 0.6719, 0.6745, 0.6761, 0.6806, 0.6847.
Trading tips
Long positions may be opened from the level of 0.6720 with the target at 0.6800 and stop loss at 0.6684.
Short positions may be opened from the level of 0.6640 with the target at 0.6580 and stop loss at 0.6670.
Implementation time: 1-3 days.
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