LiteForex - Analytics

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    Analytical review of the currency pair NZD/USD of 11.05.2016.

    Technical data of the currency pair:

    Previous closing: 0.6763;
    Daily range: 0.6760-0.6826;
    Opening: 0.6763;
    52- week range: 0.6233-0.7564;
    Annual revenue: -7.24;
    Change in % for the previous day: 0.44. 

    Analytical review:

    • Last week the NZD fell by over 200 points against the USD. During yesterday’s trading session rally in the USD was stopped at the local support level of 0.6730;
    • Important New Zealand’s statistics released last week showed that the number of employed in the country increased by 1.2% against 0.9% in the previous period and the forecast of 0.7%;
    • New Zealand dollar is a commodity currency. Demand for the NZD is supported by the rise in oil prices. During yesterday’s trading session the price of crude oil WTI has increased by 2.85%;
    • “Commitments of Traders” shows ambiguous picture. Large investors have increased the number of long positions by 1940 contacts. The number of short positions has grown by 3110 contracts;
    • This week, the data on the US oil inventories will be released (today) and retail sales volume in the USA (Friday). This information can affect movement direction and volatility in the market.

    Summary:

    • Positive New Zealand’s statistics and ambiguous situation in the world economy put pressure on the New Zealand currency. The rise on oil prices supports the demand on the New Zealand currency. According to “COT” large investors do not have general opinion about the NZD;
    • Therefore, it is likely that the NZD will grow against the USD. It is recommended to open long positions.

    Trading tips for the currency pair NZD/USD

    Key levels:
    Support levels: 0.6730 and 0.6780
    Resistance levels: 0.6830, 0.6880 and 0.6930

    Medium-term trading, H1
    At the moment the currency has broken down and consolidated above the local resistance level of 0.6780. If the price maintains mirrored support level of 0.6780 and in case of the respective confirmation (such as Price Action pattern), we recommend 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 0.6875, 0.6925 and 0.6975 with the use of trailing stops.

    Analytical review of the currency pair NZD/USD of 11.05.2016.
    Medium-term trading, H1

    Short-term trading, М15
    The currency is traded in the range of 0.6790-0.6820. After breaking out and testing of the upper limit (0.6820) of the trading range, it is advisable to open to open long positions. Risk per trade is not more than 3% of capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 0.6850, 0.6890 and 0.6925 with the use of trailing stop.

    Analytical review of the currency pair NZD/USD of 11.05.2016.
    Short-term trading, М15

     

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