Technical data of the currency pair:

Previous closing: 0.7040;
Daily range: 0.7051-0.7124;
Opening: 0.7074;
52-week range: 0.6233-0.7234;
Annual income: -5.94%;
Change in % for the previous day: +0.11.

Analytical review:

  • Since the beginning of June the NZD has grown against the USD for over 350 points. At the moment, support and resistance levels of the currency are 0.6980 and 0.7145 respectively;
  • Last week, important statistics of New Zealand was published. According to Statistical Office of the country, GDP growth for the previous quarter was 0.7%, against expectations of 0.5%;
  • NZD is a commodity currency. Demand for the NZD is associated with the rise in oil prices. During the Asian session futures for crude oil WTI has grown by 1%;;
  • “Commitments of Traders” shows ambiguous picture. Large investors have reduced the number of long positions by 2634 contracts. Contracts for the short positions have also dropped by 14116;
  • Important data of this week will include: speech by the head of the US Fed, Mrs. Janet Yellen (Wednesday). This event may affect movement direction in the pair and market volatility.

Summary:

  • Positive New Zealand’s statistics and the rise in oil prices have increased demand for the NZD. According to “COT” large investors do not have common opinion about the NZD;
  • In the near future the NZD is likely to grow against the USA. It is advisable to open long positions.

Trading tips for the currency pair NZD/USD

Key levels:
Support levels: 0.7085, 0.7030 and 0.6980.
Resistance levels: 0.7145 and 0.7190.

Medium-term trading, H1
At the moment, the currency has broken down and consolidated above the local resistance level of 0.7085. If the pair maintains the mirrored support level of 0.7085 and in case of the respective confirmation (such as Price Action pattern), it is recommended 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 0.7150, 0.7190 and 0.7250 with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, H1

Short-term trading, М15
Currently, the currency is traded in the demand zone of 0.7090-0.7105. If the price maintains this zone, it is advisable to enter the market with the long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 0.7140, 0.7175 and 0.7225 with the use of trailing stop.

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




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