NZD/USD: the pair is waiting for the inflation data to continue to grow

Timeframe Intraday
Recommendation BUY STOP
Entry Point 0.7270
Take Profit 0.7340, 0.7400
Stop Loss 0.7210
Key Levels 0.7010, 0.7100, 0.7175, 0.7245, 0.7340, 0.7400
Alternative scenario
Recommendation SELL STOP
Entry Point 0.7170
Take Profit 0.7100, 0.7010
Stop Loss 0.7220
Key Levels 0.7010, 0.7100, 0.7175, 0.7245, 0.7340, 0.7400
Current trend
During this week the NZD is growing against the USD. The market is reaction to the USA Secretary of the Treasure Steven Mnuchin’s commentary about how the strong USD can negatively affect the US economy in the short term. Besides, the USA leaving the Trans-Pacific Partnership agreement and the plan to review the NAFTA results in the nervous mood of the market and makes the trader to find an alternative to the USD.
Support and resistance
Now the price is testing the level of 0.7245 (the cluster of Fibonacci correction 38.2% in the long term and 61.8% in the middle term), the breakout here can lead to the further growth to the level of 0.7340 (Fibonacci correction 76.4%) and 0.7400. The New Zealand 4 quarter 2016 Consumer Price index publication Index can support the NZD. The index is expected to grow by 0.3% MoM and by 1.2% YoY. On the other hand, the Stochastic is reaching the overbought zone, which can reflect the possibility of the correction to the level of 0.7175 (Fibonacci correction 50.0%), but the upward scenario is more favorable.
Support levels: 0.7175, 0.7100, 0.7010.
Resistance levels: 0.7245, 0.7340, 0.7400.
Trading scenario
Open long positions is the price is set above the level of 0.7245 with the target at 0.7340, 0.7400 and stop loss at 0.7210. Open short positions below the level of 0.7175 with the target at 0.7100, 0.7010 and stop loss at 0.7220.
Share on Google Plus

About Cute Pets And Babies

    Blogger Comment
    Facebook Comment


Δημοσίευση σχολίου