Technical data of the currency pair:
Previous closing: 0.6949;
Daily range: 0.6949-0.7028;
52- week range: 0.6233-0.7752;
Annual revenue: -9.18%;
Change in % for the previous day: +1.32.
- Since the beginning of April the NZD has grown by 250 points against the USD. During yesterday’s trading session the price of the currency has grown by 1.32%.
- Important New Zealand’s statistics released yesterday showed that consumer price index rose to 0.2% against the decline of 0.5% in the previous quarter and the forecast of 0.1%.
- US statistics released last week showed the decline in the industrial production and consumer sentiments, which put pressure on the USD.
- New Zealand dollar is a commodity currency. Demand for the NZD is supported by the rise in the oil prices. Since beginning of April crude oil WTI has increased in price by over 15%.
- “Commitments of Traders” shows the decrease in long positions by 305 contacts. The number of short positions has grown by 876 contracts.
- Positive New Zealand’s statistics, decrease in market sentiments in the USA, the rise in oil prices and ambiguous situation in the world economy put pressure on the New Zealand currency.
- According to “COT” large investors have reduced the number of long positions.
- Therefore, it is likely that the NZD will grow against the USD. It is recommended to open long positions.
Trading tips for the currency pair NZD/USD
Medium-term trading: At the moment the currency has broken down and consolidated above resistance level of 0.6950. If the price maintains and tests this level and in case of the respective confirmation (such as Price Action pattern), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 0.7050, 0.7090 and 0.7150 with the use of trailing stops.
Short-term trading: on the chart with the timeframe 15M the currency is traded in the range of 0.6990-0.7025. After breaking out and testing of the resistance level of 0.7025, we recommend to open long positions. Risk per trade is not more than 3% of capital. Stop order can be placed at the level of 0.7005. Take profit can be placed in parts at the levels of 0.7050, 0.7075 and 0.7095 with the use of trailing stop.