2016-08-12 10:56:55

Technical data of the currency pair:

Previous closing: 0.7211; Daily range: 0.7189-0.7229;
Opening: 0.7211; 52-week range: 0.6233-0.7329;
Annual income: +8.70%; Change in % for the previous day: +0.01.

Analytical review:

  • ​The NZD has grown by over 300 points against the USD since the end of July. At the yesterday’s trading session the rise in the NZD was stopped at the resistance level of 0.7320;
  • It became known today that New Zealand’s index of business activity in the manufacturing sector in July fell to 55.8 against the previous level of 57.6;
  • As expected the RBNZ has lowered interest rate to 2.00% from 2.25%. According to the Central Bank, high exchange rate of the national currency puts pressure on exports and imports;
  • Commitments of Traders” shows ambiguous picture. Large investors have increased the number of long positions by 451 contracts. Contracts for the short positions have also increased by 449;
  • Today, US retail sales data and producer price index will be released. This news can affect market volatility of movement direction in the currency.

Summary:

  • ​More monetary policy easing by the RBNZ and weak data on the New Zealand’s economy put pressure on the NZD. 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: 0.7145, 0.7090 and 0.7030.
Resistance levels: 0.7215 and 0.7255.

Medium-term trading, H4
At the moment the currency pair is traded at the resistance level of 0.72150.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 0.7150, 0.7095 and 0.7035 with the use of trailing stop

Medium-term trading, H4
Medium-term trading, H4

Short-term trading, М15
At the moment the currency is traded in the range of 0.7190-0.7225. It is recommended to enter the market after breaking out and testing this zone. Positions can be opened 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