LiteForex - Analytics

    LiteForex

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    Analytical review of the currency pair NZD/USD of 06.05.2016.

    Technical data of the currency pair:

    Previous closing: 0.6884;
    Daily range: 0.6837-0.6891;
    Opening: 0.6884;
    52- week range: 0.6233-0.7564;
    Annual revenue: -8.20%;
    Change in % for the previous day: 0.10. 

    Analytical review:

    • In the last three trading sessions the NZD fell by over 150 points against the USD. Currently, NZD broke out and consolidated below the local support level of 0.6875;
    • This week, important New Zealand’s statistics was released, which showed that according to Statistical agency the number of employed increased by 1.2% against 0.9% for the previous period and the forecast of 0.7%;
    • US Department of Labor stated yesterday that the number of initial applications for unemployment benefit rose by 17000 to 274000 against the forecast of 260000;
    • “Commitments of Traders” shows ambiguous picture. Large speculators have increased the number of long positions by178 contracts. Number of short positions has been increased by 3592 contracts;
    • Today US non-farm payrolls data will be released, which can have strong impact on the market.

    Summary:

    • Weak US economic statistics, positive New Zealand’s statistics 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;
    • Prior to the release of non-farm payrolls data trend movement is unlikely to change. It is advisable to enter the market for opening speculative transactions on the shorter timeframes.

    Trading tips for the currency pair NZD/USD

    Key levels:
    Support levels: 0.6835 and 0.6765;
    Resistance levels: 0.6875 and 0.6935.

    Long-term trading, D1
    Prior to the release of non-farm payrolls today, we do not expect changes in the movement of the NZD. At the moment it is recommended to refrain from opening long-term transactions on the currency pair NZD/USD. It is advisable to enter the market after the publication of statistics on Friday and retesting of the key support and resistance levels and in case of the respective confirmation (such as Price Action pattern).

    Long-term trading, D1
    Long-term trading, D1

    Short-term trading, М15
    At the moment the currency has broken out and consolidated below the local support level of 0.6850. If the price maintains the mirrored resistance level of 0.6850, we recommend to open short positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 0.6820, 0.6780 and0.6740 with the use of trailing stops.

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

     

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