Today we shall discuss about the NZDUSD, and related trade opportunities. The pair is trading in a 200 pips range from the past couple of weeks. I have been bearish on the pair for quite some time. I am waiting for the pair to close the gap at around 0.8120 level, as shown in the daily chart below. So, I think we should look for sell opportunities in the short to medium term.
Looking at the 4 hour chart of NZDUSD, there is an up-move trend line as shown below. We need the pair to break this trend line and the immediate support to enter a sell trade. Once the pair manages to break the trend line and the most relevant support (currently at around 0.8300), closes below it, then we will jump into a sell trade. Alternatively, if the pair moves higher, then the trend line and support combination will also move higher, and will provide us a better sell opportunity.
Initial target should be around the last low at around the 0.8210 level, and final target could be around the gap close level. Stop should be placed above the broken trend line and support level.
Reviewing yesterday’s events and trades
Yesterday’s event calendar was light, as there was no major market moving event scheduled. Yesterday in the European session, Euro area’s current account and trade numbers were released, which proved to be Euro positive as Eurozone trade surplus widened more than expected in September. Later in the day, Canadian Foreign securities purchase data was released, which jumped higher from 2.08B to 8.36B. In the NY session, US NAHB housing market index was released, which missed the expectation of 55. Overall, the market is still ranging.
Fundamental Outlook for the day
Today, there was a major event scheduled for the Germany. German ZEW economic sentiment was scheduled to be released in the European session and was expected to rise from 52.8 to 54.0. The outcome was better than expected, which is helping EURUSD to gain some ground. Later in the NY session, there are no major events scheduled for the US. However, the Fed chairman Ben Bernanke is scheduled to speak later in the next Asian session. His speech will be eyed closely as the market is willing to know his views after the strong labor data. So, watch this event carefully and trade accordingly.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURGBP, USDJPY, EURJPY, AUDUSD, AUDNZD and EURAUD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
