Technical data of the currency pair:
Previous closing: 0.6724;
Daily range: 0.6715-0.6761;
52- week range: 0.6233-0.7752;
Annual revenue: -11.30%;
Change in % for the previous day: 0.73.
- Since the beginning of February the currency is traded in the range of 0.6570-0.6750. NZD quietly reacted to the US statistics released yesterday.
- It became known yesterday composite ISM index in the USA fell from 53.5 to 53.4. Industrial orders rose by 1.6%, which was below analysts’ expectations of 2.0%.
- China is important strategic partner of New Zealand. Decline in the Chinese activity indices puts pressure on the currency dynamics.
- “Commitments of Traders” shows ambiguous situation. Large speculators do not have a common opinion about the NZD. The number of long positions has reduced by 2535 contracts. Short positions fell by 264 contracts.
- Important US data on non-farm payrolls will become known today. It can have a strong impact on the further development of events.
- At the moment the currency is traded in the zone of strong resistance levels of 0.6750-0.6770. Ambiguous US statistics puts strong pressure on the currency movement. According to “COT” large speculators do not have a common opinion about the NZD.
- Prior to publication of “non-farm payrolls” changes in the trend are not expected. We recommend to enter the market after speculative operations at the smaller timeframes.
Trading tips for the currency pair NZD/USD
Long-term trading: Prior to publication of non-farm payrolls today, the exchange rate of the New Zealand dollar is likely to remain unchanged. At the moment we recommend to refrain from long-term transactions on the pair NZD/USD. It is better to enter the market after the release of statistics and retesting of the key support and resistance levels and in case of respective confirmation (for example, a pattern Price Action).
Short-term trading: At the moment the currency is traded between the local support and resistance levels of 0.6715 – 0.6755. We recommend to enter the marker after breaking down and testing these levels. The positions can be opened near the signal line, and the nearest support/resistance levels. Risk per trade is less than 2.5% of capital. Stop-order can be placed slightly above/below the signal line. Take profit should be placed in parts of по 50%, 30% and 20% with the use of trailing stop.