LiteForex - Analytics

    LiteForex

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    Analytical review of NZD/USD for 09.06.2016

    Technical performance:

    Prev. closure: 0.7093; Daily range: 0.7073-0.7147;
    Opening: 0.7093; 52-week range: 0.6233-0.7234;
    Annual profit: -5.94%; Previous day's change (%): 2.06.

    Analytical review

    • The New Zealand dollar has grown by over 350 points against the US dollar, which is a significant consolidation. The kiwi continued to rally at yesterday's trading session, growing by over 2%.
    • Reserve Bank of New Zealand kept the interest rate at the previous level of 2.25%. The Regulator announced that the level of inflation in the country had started to stabilize. The country's Central Bank Governor proclaimed that the interest rate may be changed, if necessary.
    • The NZ dollar belongs to commodity currencies. Demand for this currency grows as oil quotes grow. WTI oil futures grew by over 30 cents at the Asian trading session.
    • The Commitments of Traders Report provides ambiguous data. Huge operators increased long positions by 1021 contracts. Short positions were increased by 2276 contracts.
    • A news factor is worth attention this week: US initial jobless claims (today). These data may affect market volatility and evolution.

    Summary

    • Upbeat statistics on New Zealand's economy and the rebound in oil quotes support the demand for the New Zealand dollar. According to COT report, huge operators are not definite about the kiwi.
    • So, we expect that the NZD will consolidate against the USD in the nearest future. We advise you to search for market entry points to open long positions.

    Trading tips for NZD/USD

    Key levels:
    Support levels: 0.7050, 0.6850
    Resistance levels: 0.7190, 0.7300

    Long-term trading, D1
    the currency has crossed a resistance level of 0.7050. Once a mirror support level of 0.7050 is retained and tested, and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 0.7250, 0.7380 and 0.7450 , with Trailing Stop applied.

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

    Short-term trading, M15
    the currency is trading at 0.7105-0.7145. Once the upper border of the trading range at 0.7145 is broken and tested, we recommend searching for market entry point to open short positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 0.7180, 0.7210 and 0.7235, with Trailing Stop applied.

    Short-term trading, M15
    Short-term trading, M15


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