The Euro moved lower against the US dollar yesterday after the US GDP data release, but it managed to hold the ground against the New Zealand dollar. The EURNZD pair is consolidating inside a pattern on the 4 hour chart, and I think a break of the same might provide us a trading opportunity.
There is an expanding triangle formed on the 4 hour chart. Now, there are two scenarios – First, if the pair breaks the triangle support area and settles below it, then we can enter into a sell trade. Alternatively, if the pair breaks the 1.58 resistance zone and settles above it, then we can jump into a buy trade.
Initial target for the sell trade should be around the 1.5640 level, and final target could be around the 1.5610 level. Stop should be above the broken support zone.
Initial target for the buy trade should be around the 1.5880 level, and final target could be around the 1.5960 level. Stop should be below the broken resistance zone.
Reviewing yesterday’s events and trades
Yesterday, there were several important risk events lined up during the NY session, including the US ADP employment change figure, the US GDP data and the FOMC interest rate decision. The US GDP outcome surprised the market with a solid jump of 4%, beating the expectation of 3%. The US dollar was immediately seen trading higher after the release, as the investors were encouraged by the outcome. The pairs like EURUSD and GBPUSD traded lower after the release, and the biggest gainer was the USDJPY pair, which traded closer to the 103.00 level.
Fundamental Outlook for the day
Today, the US initial jobless claims number, the employment cost index and Chicago PMI will be released. If the outcome again surpasses the expectation, then the US might continue trading higher, else might correct in the short term. Moreover, the Canadian GDP data was published, which is expected to expand by 0.3%. Later during the next Asian session, the Chinese manufacturing PMI and Australia’s PPI data will be published, which can impact the AUDUSD and NZDUSD pairs.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURGBP, GBPCHF, GBPJPY, EURJPY, USDCAD, GBPCAD, NZDUSD, AUDUSD and EURAUD.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
