2016-08-05 12:01:53

Technical data of the currency pair:

Previous closing: 0.7173;
Daily range: 0.7169-0.7208;
Opening: 0.7173;
52-week range: 0.6233-0.7329;
Annual income: +10.31%;
Change in % for the previous day: +0.20.

Analytical review:

  • Over the past two weeks the NZD has grown by 250 points. Through the last few sessions the trading pair is traded in the range of 0.7165-0.7225;
  • Important US statistics released this week showed that business activity index in the US non-manufacturing sector fell to 55.5 in July against 56.5 in June. ADP report showed that employment in the non-agricultural sector of the USA rose by  179000 against the forecast of 170000;
  • NZD is a commodity currency. Pressure on the NZD is added with the decrease in oil price. During the Asian session futures for crude oil WTI has dropped by 1%;
  • “Commitments of Traders” shows ambiguous picture. Large investors have reduced the number of long positions by 2558 contracts. Contracts for the short positions have also dropped by 600;
  • Today, US non-farm payroll report will be released, which can affect movement direction in the pair and market volatility.


  • Mixed US data and decline in oil price put strong pressure on the NZD. According to “COT” large investors do not have common opinion about the NZD;
  • Prior to the release of non-farm payroll report, movement direction in the pair is likely to remain unchanged. It is recommended to enter the market for opening speculative trades on lower timeframes.

Trading tips for the currency pair NZD/USD

Key levels:
Support levels: 0.7165 and 0.7120.
Resistance levels: 0.7225 and 0.7320.

Long-term trading, H4
Prior to the release of non-farm payrolls today, we do not expect changes in the movement of the pair. At the moment it is advisable to refrain from opening long-term transactions on the currency pair. Traders can enter the market after the release of the US statistics and retesting of the key support and resistance levels and in case of the respective confirmation (such as Price Action pattern).

Long-term trading, H4
Long-term trading, H4

Short-term trading, М15
Currently, the currency has broken down and consolidated above the local resistance level of 0.7195. If the pair maintains the mirrored support level of 0.7195, it is recommended to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 0.7230, 0.7250 and 0.7290 with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15