Technical data of the currency pair:
Previous closing: 0.6977;
Daily range: 0.6976-0.7020;
Opening: 0.6977;
52- week range: 0.6233-0.7582;
Annual revenue: -6.90%;
Change in % for the previous day: +0.17.

Analytical review:

  • During the last two trading sessions the NZD has grown by over 150 points. Currently, the currency is traded in the range of 0.6955-0.6995;
  • As expected, last week RBNZ left interest rate at the previous level of 2.25%. However, the regulator said that that in the near future monetary policy easing may be introduces in the country;
  • According to the US Bureau of economic analysis US GDP in Q1 2016 was 0.5% against 1.4% in Q4 2015 and the forecast of 0.7%;
  • NZD is a commodity currency. Demand for the New Zealand currency is supported the positive dynamics of oil prices. Since beginning of April the price of crude oil WTI increased by over 25%;
  • “Commitments of Traders” shows ambiguous picture. Large speculators have increased the number of long positions 178 contracts. The number of short positions has been increased by 3592 contracts.

Summary:

  • Weak US statistics, the rise in oil prices and ambiguous situation in the world economy put strong pressure on the NZD.
  • According to “COT” large investors do not have common opinion about the NZD.
  • 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

Key levels:
Support levels: 0.6955 and 0.6905.
Resistance levels: 0.6995 and 0.7050.

Medium-term trading, H1:
At the moment the currency is traded at the resistance level of 0.6995. After breaking out and testing of 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.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, М15
on the chart with the timeframe 15M the currency is traded between support and resistance levels of 0.6985/0.7020. We recommend to enter the market after breaking out and testing of these levels. Positions can be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of 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




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