2016-08-09 11:19:20

Technical data of the currency pair:

Previous closing: 0.7139; Daily range: 0.7110-0.7161;
Opening: 0.7139; 52-week range: 0.6233-0.7329;
Annual income: +7.93%; Change in % for the previous day: +0.28.

Analytical review:

  • ​Over the last week correction in the NZD was 100 points against the USD. At the moment the NZD maintains the local resistance level of 0.7145;
  • The USD was supported by the positive statistics released last week. According to the US Labor Department 255000 new jobs were created in the country outside agricultural sector in July, which was above the forecast of 180000;
  • NZD is a commodity currency. Pressure on the NZD is added in case of the decrease in oil price. During the Asian session the price of crude oil WTI has dropped by 1%;
  • “Commitments of Traders” shows ambiguous picture. Large investors have increased the number of long positions by 27049 contracts. Contracts for the short positions have also increased by 26832;
  • Technical analysis also shows possibility of correction in the currency pair NZD/USD. On the timeframe H4 reversal pattern “triple top” has been formed.

Summary:

  • ​Positive data on the US labor market and decline in oil prices put significant pressure on the currency pair NZD/USD. Technical analysis shows that correction can continue. According to COT large investors do not have common opinion about the NZD.
  • In the near future the NZD may drop against the USD. It is recommended to open short positions.

Trading tips for the currency pair NZD/USD

Key levels:
Support levels: 0.7030 and 0.6970.
Resistance levels: 0.7145 and 0.7215.

Long-term trading, H4
At the moment the currency pair is traded at the resistance level of 0.7145. If the price maintains this level and in case of the respective confirmation (for example– паттерны Price Action), it is advisable to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 0.7060, 0.7010 and 0.6970 with the use of trailing stop.

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

Short-term trading, М15
At the moment the currency is traded in the range of 0.7110-0.7145. It is recommended to open positions at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

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