NZD/USD: the pair grows
21 June 2019, 09:40
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 0.6615 |
| Take Profit | 0.6665, 0.6680 |
| Stop Loss | 0.6580 |
| Key Levels | 0.6524, 0.6546, 0.6565, 0.6580, 0.6610, 0.6645, 0.6665, 0.6680 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 0.6575 |
| Take Profit | 0.6524 |
| Stop Loss | 0.6610 |
| Key Levels | 0.6524, 0.6546, 0.6565, 0.6580, 0.6610, 0.6645, 0.6665, 0.6680 |
Current trend
NZD is actively growing against USD, developing the “bullish” dynamics since June 18. Strengthening the instrument is largely due to the weakening of USD after the Fed hinted at a possible interest rate cut at the July meeting. Also, investors are encouraged by the possibility of concluding a trade agreement between the US and China, which will favorably affect the dynamics of commodity assets and will help reduce the overall tensions in the market.
Yesterday, NZD was supported by macroeconomic statistics. Thus, Q1 GDP of New Zealand increased by 0.6% QoQ and 2.5% YoY, which fully coincided with the growth rate for the last quarter. Analysts had expected a slight slowdown to +2.4% YoY.
Support and resistance
On the daily chart, Bollinger bands move flat. The price range is virtually unchanged but remains quite spacious for the current activity level. The MACD grows, keeping a moderate buy signal (the histogram is above the signal line), and is preparing to test the zero line. Stochastic is growing almost vertically but is rapidly approaching its highs, which indicates that NZD may become overbought in the super short term.
It is better to open new long positions until the current “bullish” signals from the indicators are canceled.
Resistance levels: 0.6610, 0.6645, 0.6665, 0.6680.
Support levels: 0.6580, 0.6565, 0.6546, 0.6524.
Trading tips
Long positions can be opened after the breakout of 0.6610 with the target at 0.6665 or 0.6680. Stop loss is 0.6580.
Short positions can be opened after a rebound from 0.6610 and a breakdown of 0.6580 with the target at 0.6524. Stop loss is 0.6610.
Implementation period: 2–3 days.
NZD is actively growing against USD, developing the “bullish” dynamics since June 18. Strengthening the instrument is largely due to the weakening of USD after the Fed hinted at a possible interest rate cut at the July meeting. Also, investors are encouraged by the possibility of concluding a trade agreement between the US and China, which will favorably affect the dynamics of commodity assets and will help reduce the overall tensions in the market.
Yesterday, NZD was supported by macroeconomic statistics. Thus, Q1 GDP of New Zealand increased by 0.6% QoQ and 2.5% YoY, which fully coincided with the growth rate for the last quarter. Analysts had expected a slight slowdown to +2.4% YoY.
Support and resistance
On the daily chart, Bollinger bands move flat. The price range is virtually unchanged but remains quite spacious for the current activity level. The MACD grows, keeping a moderate buy signal (the histogram is above the signal line), and is preparing to test the zero line. Stochastic is growing almost vertically but is rapidly approaching its highs, which indicates that NZD may become overbought in the super short term.
It is better to open new long positions until the current “bullish” signals from the indicators are canceled.
Resistance levels: 0.6610, 0.6645, 0.6665, 0.6680.
Support levels: 0.6580, 0.6565, 0.6546, 0.6524.
Trading tips
Long positions can be opened after the breakout of 0.6610 with the target at 0.6665 or 0.6680. Stop loss is 0.6580.
Short positions can be opened after a rebound from 0.6610 and a breakdown of 0.6580 with the target at 0.6524. Stop loss is 0.6610.
Implementation period: 2–3 days.
No comments:
Write comments