LiteForex - Analytics

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    Analytical review of the currency pair NZD/USD on 24.02.2016

    NZD/USD

    Technical data of the currency pair:

    Previous closing: 0.6644;
    Daily range: 0.6606-0.6646;
    Opening: 0.6644;
    52- week range: 0.6233-0.7752;
    Annual revenue: -11.82%;
    Change in % for the previous dayнь: -0.96.


    Analytical review:

    • Since the beginning of February the currency has been traded in the range of 0.6565-0.6725. During yesterday’s trading session the pair had maintained the level at the upper limit of the range and the NZD fell by 0.96% against the USA.
    • Yesterday important US news became known, which showed that sales in the secondary housing market rose to 5.47М. The index exceeded the forecast of 5.32М.
    • NZD is a commodity currency. Further decline in the currency will be caused by the decrease in oil prices, which in its turn will be triggered by the concerns that reduction of oil production in the USA will be balanced by the increase of oil production in Iran.
    • “Commitments of Traders” shows the increase of short positions up to 4155 contracts.
    • Some important news will be released this week, including sales of new houses in the USA, oil inventories (today) and basic orders for durable goods (on Thursday). These events can affect dynamics and volatility in the market.

    Summary:

    • Further decline in NZD will be caused by the decrease in oil prices, economic problems in China, positive US statistics. According to “COT” large speculators have increased the number of short positions.
    • In the short term the NZD will decline against the USD. We recommend to open short positions.

    Trading tips for the currency pair NZD/USD

    Medium-term trading:
    at the moment, the currency has consolidated below the zone of 0.6685-0.6725. After testing these zone and in case of respective confirmation (for example, a pattern Price Action), we recommend to open short positions. Risk per trade is less than 2.5% of capital. Stop-order can be placed slightly at the level of 0.6760. Take profit should be placed in parts at the levels of0.6580, 0.6500 and 0.645 with the use of trailing stop.


    Short-term trading: currently, the pair is traded between the local support and resistance levels of 0.6605 – 0.6635. We recommend to enter the market after breaking down and testing these levels. The positions can be opened near the signal line, close to support/resistance levels. Risk per trade is more than 3% of capital. Stop-order can be placed slightly above/below the signal line. Take profit should be placed in parts at the levels of 50%, 30% and 20% with the use of trailing stop.



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