NZD/USD

Technical data of the currency pair:

Previous closing: 0.6703;
Daily range: 0.6682-0.6716;
Opening: 0.6703;
52- week range: 0.6233-0.7752;
Annual revenue: -11.94%;
Change in % for the previous day: -0.15.
Годовой доход: -11.94%;
Изм. % за прошлый день: -0.15.

Analytical review:

  • ЗRecently, the NZD has significantly corrected (over 150 points) in last week rally.
  • The release of the American statistics on Wednesday showed that new houses sales in February rose by 2% up to 512000 against the forecast of 510000. According to Department of labor the number of initial applications for unemployment benefits increased by 6000 to 258000 against expectations of 268000.
  • The USD has strengthened due to the US Fed comments. The head of the US Fed of Philadelphia said that the state of the US economy enables the US Fed to continue tightening of the monetary policy. US Fed of US Fed Philadelphia expects that interest rates will be raised three times until the end of this year.
  • The NZD is a commodity currency. In the last two sessions the price of crude oil WTI fell by over 4% due to the information released by Energy Information Administration showing that oil reserves in the USA rose by 9.4 million barrels against the forecast of 3.0 million barrels.
  • “Commitments of Traders” shows ambiguous picture. Large speculators have reduced the number of long positions by 4040 contracts. Short positions have been also reduced by 2100 contracts.

Summary:

  • Positive US data, increased market sentiments, decline in the oil price and ambiguous situation in the global economy put pressure on the NZD.
  • According to “COT” large speculators do not have common opinion about the NZD.
  • In the near future the NZD will weaken against the USD. We recommend to open short positions.

Trading tips for the currency pair NZD/USD

Long-term trading:
Since the beginning of February the currency is traded in the range of 0.6575-0.6860. We recommend to enter the market after breaking out and testing of these levels. Positions should be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30%, 20% with the use of trailing stop.


Analytical review of the currency pair NZD/USD

Medium-term trading: The currency is traded in the range of 0.6685-0.6725. After breaking out and testing of support level of 0.6685 and in case of the respective confirmation (such as pattern Price Action), we recommend to open short positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of : 0.6630, 0.6585 and 0.6550 with the use of trailing stop.


Analytical review of the currency pair NZD/USD




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