NZD/USD: general review
06 February 2019, 14:12
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL |
| Entry Point | 0.6849 |
| Take Profit | 0.6805 |
| Stop Loss | 0.6865 |
| Key Levels | 0.6927, 0.6897, 0.6866, 0.6835, 0.6805 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 0.6870 |
| Take Profit | 0.6897, 0.6927 |
| Stop Loss | 0.6850 |
| Key Levels | 0.6927, 0.6897, 0.6866, 0.6835, 0.6805 |
Current trend
The pair continues to trade within the upward channel. At the end of last week, there was a reversal from its upper border, after which the quotes began correction and reached the level of 0.6850.
Now, USD is supported by yesterday’s speech of President Donald Trump, in which he noted the successes of the American economy, in particular, the creation of 5.3 million new jobs (600,000 in manufacturing) over two years, rapid wage growth, and a decrease in unemployment to its lowest level in 50 years.
Currently, the price has the potential to decrease to 0.6835 (Murrey [4/8]) and 0.6805 (Murrey [3/8], the lower border of the ascending channel). However, much will depend on the publication of the Global Dairy Trade index and the speech of the Fed Chairman Jerome Powell. Global Dairy Trade index has been growing for two months and added 4.2% last time. The continuing trend may support NZD. Jerome Powell is to speak in Washington: he may answer questions about monetary policy.
Support and resistance
The pair declines to the lower border of the ascending channel at 0.6805. The continuation of the correction is confirmed by the indicators: Bollinger Bands are reversing down, MACD histogram has entered the negative zone and formed a sell signal, Stochastic is still pointing downwards but entered the oversold zone. If the instrument consolidates above 0.6866 (Murrey [5/8]), growth may continue to 0.6897 (Murrey [6/8]) and 0.6927 (Murrey [7/8]).
Support levels: 0.6835, 0.6805.
Resistance levels: 0.6866, 0.6897, 0.6927.
Trading tips
Short positions may be opened from the current level with targets at 0.6835, 0.6805 and stop loss at 0.6860.
Long positions may be opened if the instrument consolidates above 0.6866 with targets at 0.6897, 0.6927 and stop loss at 0.6850.
Implementation period: 3-4 days.
The pair continues to trade within the upward channel. At the end of last week, there was a reversal from its upper border, after which the quotes began correction and reached the level of 0.6850.
Now, USD is supported by yesterday’s speech of President Donald Trump, in which he noted the successes of the American economy, in particular, the creation of 5.3 million new jobs (600,000 in manufacturing) over two years, rapid wage growth, and a decrease in unemployment to its lowest level in 50 years.
Currently, the price has the potential to decrease to 0.6835 (Murrey [4/8]) and 0.6805 (Murrey [3/8], the lower border of the ascending channel). However, much will depend on the publication of the Global Dairy Trade index and the speech of the Fed Chairman Jerome Powell. Global Dairy Trade index has been growing for two months and added 4.2% last time. The continuing trend may support NZD. Jerome Powell is to speak in Washington: he may answer questions about monetary policy.
Support and resistance
The pair declines to the lower border of the ascending channel at 0.6805. The continuation of the correction is confirmed by the indicators: Bollinger Bands are reversing down, MACD histogram has entered the negative zone and formed a sell signal, Stochastic is still pointing downwards but entered the oversold zone. If the instrument consolidates above 0.6866 (Murrey [5/8]), growth may continue to 0.6897 (Murrey [6/8]) and 0.6927 (Murrey [7/8]).
Support levels: 0.6835, 0.6805.
Resistance levels: 0.6866, 0.6897, 0.6927.
Trading tips
Short positions may be opened from the current level with targets at 0.6835, 0.6805 and stop loss at 0.6860.
Long positions may be opened if the instrument consolidates above 0.6866 with targets at 0.6897, 0.6927 and stop loss at 0.6850.
Implementation period: 3-4 days.
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