NZD/USD: New Zealand dollar falls
07 February 2019, 08:50
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 0.6770 |
| Take Profit | 0.6814, 0.6847 |
| Stop Loss | 0.6730 |
| Key Levels | 0.6621, 0.6662, 0.6704, 0.6726, 0.6765, 0.6789, 0.6814, 0.6847 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 0.6720 |
| Take Profit | 0.6662 |
| Stop Loss | 0.6755 |
| Key Levels | 0.6621, 0.6662, 0.6704, 0.6726, 0.6765, 0.6789, 0.6814, 0.6847 |
Current trend
Yesterday, NZD fell against USD, returning to the lows of January 25.
Investors are focused on the US President Donald Trump speech. He noted the success of the American economy, in particular, the creation of 5.3 million new jobs in two years, 600K of which in manufacturing, rapid wage growth and a decrease in unemployment to its lows in 50 years. The President also announced a meeting with North Korean leader Kim Jong-un on February 27–28 in Vietnam, and again called on parliamentarians to allocate funds to build a wall on the Mexico border.
Today the instrument also decreases due to a poor 2018 Q4 labor market report in New Zealand. The Unemployment Rate rose sharply from 4.0% to 4.3% QoQ, with a forecast of growth only to 4.1% QoQ. Quarterly Employment Rate rose slightly (+0.1% QoQ) after increasing by 1.0% QoQ over the previous period against the expected +0.3% QoQ.
Support and resistance
On the daily chart, Bollinger bands move flat. The price range narrows, reflecting a sharp change in the trade direction. MACD reversed downwards, forming a strong sell signal (the histogram is below the signal line), and tries to consolidate below the zero line. Stochastic falls, rapidly approaching its lows, which will reflect that NZD is oversold.
It is better to keep current short positions until the situation becomes clearer.
Resistance levels: 0.6765, 0.6789, 0.6814, 0.6847.
Support levels: 0.6726, 0.6704, 0.6662, 0.6621.
Trading tips
Long positions can be opened after a rebound from 0.6726 and a breakout of 0.6765 with the target at 0.6814 or 0.6847. Stop loss is 0.6730. Implementation period: 2–3 days.
Short positions can be opened after the breakdown of 0.6726 with the target at 0.6662. Stop loss is 0.6755. Implementation period: 1–2 days.
Yesterday, NZD fell against USD, returning to the lows of January 25.
Investors are focused on the US President Donald Trump speech. He noted the success of the American economy, in particular, the creation of 5.3 million new jobs in two years, 600K of which in manufacturing, rapid wage growth and a decrease in unemployment to its lows in 50 years. The President also announced a meeting with North Korean leader Kim Jong-un on February 27–28 in Vietnam, and again called on parliamentarians to allocate funds to build a wall on the Mexico border.
Today the instrument also decreases due to a poor 2018 Q4 labor market report in New Zealand. The Unemployment Rate rose sharply from 4.0% to 4.3% QoQ, with a forecast of growth only to 4.1% QoQ. Quarterly Employment Rate rose slightly (+0.1% QoQ) after increasing by 1.0% QoQ over the previous period against the expected +0.3% QoQ.
Support and resistance
On the daily chart, Bollinger bands move flat. The price range narrows, reflecting a sharp change in the trade direction. MACD reversed downwards, forming a strong sell signal (the histogram is below the signal line), and tries to consolidate below the zero line. Stochastic falls, rapidly approaching its lows, which will reflect that NZD is oversold.
It is better to keep current short positions until the situation becomes clearer.
Resistance levels: 0.6765, 0.6789, 0.6814, 0.6847.
Support levels: 0.6726, 0.6704, 0.6662, 0.6621.
Trading tips
Long positions can be opened after a rebound from 0.6726 and a breakout of 0.6765 with the target at 0.6814 or 0.6847. Stop loss is 0.6730. Implementation period: 2–3 days.
Short positions can be opened after the breakdown of 0.6726 with the target at 0.6662. Stop loss is 0.6755. Implementation period: 1–2 days.
No comments:
Write comments