The New Zealand dollar is trading higher against most of its major counterparts after the RBNZ decided to raise the interest rates. I think the NZDUSD pair might continue to trade higher, but we might see a small pullback in the short term. This pullback can be seen as a buying opportunity, and I think we should take the advantage of the same.
There is an up-move trend line forming on the 4 hour chart for the NZDUSD pair. There is also a support area around the 0.8600-0.8580 levels. This support area also coincides with the trend line. So, if the pair falls from the current levels towards the mentioned support zone, makes a stop and forms a bullish candle pattern, then we can jump into a buy trade.
Initial target should be around the 0.8690, and final target could be around the 0.8740 level. Stop should be placed below the trend line and support area.
Reviewing yesterday’s events and trades
Yesterday, the UK employment data was published during the London session. The outcome was mostly in line with the expectations, and as a result the GBPUSD pair was seen trading higher. Moreover, the RBNZ announced the interest rates during the Asian session, and they increase the rates to 3.25% as expected. The NZDUSD pair was seen trading higher after the release. Furthermore, the Australia’s employment data was also published, which missed the expectation as the employment dropped in May. The AUDUSD pair traded a touch lower after the release.
Fundamental Outlook for the day
Today, during the New York session, the US retail sales data and business inventories figure will be published. The market is expecting an improvement in the US retail sales this time. So, if the outcome missed the expectation, then it might trigger a down-move in the US dollar. Furthermore, the BOE Governor Mark Carney will also be speaking later during the day, which could ignite swing moves in the GBPUSD pair.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, EURGBP, GBPUSD, EURJPY, EURCHF, AUDUSD and AUDCAD .
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
