Looking Forward to buy valleys in NZDUSD (extract from Weekly Market Forecast 9th of February 2014)

The NZDUSD pair found support during the last week at around the 0.8000 level. The pair bounced sharply from the mentioned support level, as highlighted in the daily chart shown below. The pair was unable to trade lower from the key support level, which is a bullish sign, in my opinion. I think the pair might retrace some gains from here, and then continue to trade higher.

Looking at the 4 hour chart of NZDUSD, there is an up-move trend line, as plotted on the chart shown below. There is also a critical support at around the 0.8240/30 level. If the pair, moves lower from the current level, makes a stop and forms a bullish divergence, then we can jump into a buy trade. Remember, we need the critical support zone at around the 0.8230/20 level to hold for this trade to be valid.

Initial target should be around the 0.8340 level, and final target could be around the 0.8420 level. Stop should be placed below the 0.8210 level.

Major events scheduled in the upcoming week
Another exciting week came to an end. One of the major risk events was the US Nonfarm payroll and the unemployment rate. The US unemployment rate dropped to 6.6%, which is a positive sign. On the other hand, the Nonfarm payrolls registered a gain of only 113K, which missed the huge expectations of the 185K. The bad weather was blamed for the poor data. This may weigh on the US dollar in the short to medium term. Furthermore, the data which was released for the Euro zone during the last week was mixed. However, the miss in the NFP data for the US helped the EURUSD, and pushed the EURUSD pair higher on the Friday. The pair traded as high as 1.3640 level.

Let us look at all major events lined up in the upcoming week.
Sunday – Japan’s bank lending data.

Monday – Swiss unemployment data, French production data, Italian production data, Australia’s home loans data and NAB business confidence.

Tuesday – NFIB small business optimism, Chinese imports data, Chinese exports data and Chinese trade balance figures.

Wednesday – Swiss inflation data, Euro zone industrial production data, US federal budget balance figures and Australia’s employment data.

Thursday – German CPI data, Swiss PPI data, US retail sales data, Chinese CPI data and Chinese PPI data.

Friday – French GDP, German GDP, Spanish CPI, Spanish GDP, Italian GDP, Euro zone GDP, Canadian manufacturing sales, US import price index, US industrial production data and Michigan consumer sentiment.

This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: USD INDEX, EURUSD, GBPUSD, USDCAD, USDJPY, EURJPY, GBPJPY, AUDUSD, EURAUD, AUDNZD, GOLD and OIL.
Get it HERE: Vladimir’s Markets Forecast

Enjoy the weekend friends!

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