Hi friends,
Early in the week we saw NZDUSD opened with a gap of almost 100 pips with the news of ban on New Zealand Dairy products from China. Investors saw that as a big setback and as a result NZDUSD was pressured.
However, in the last two days, we witnessed an aggressive bullish move from NZDUSD. The pair has now filled the opening weekend gap and at the time of writing trading above 0.7890.
We are looking forward to sell NZDUSD above 7910. Pair is creating a bearish hidden divergence on 4H chart and continuing divergence on 1H chart. So, we have two scenarios to sell NZDUSD.
For first scenario, we are looking for a push higher to levels such as 7925/35 or maybe 7955/60 marked as a red line in a chart below. From the said levels, we will be looking for a bearish 1H candle pattern to form along with bearish downward slope in MACD to enter the trade. Initial target would be around 7850/40 as we have a rising trend line there. And, if you are looking for a medium term target, then look for a break of the trend line plotted in the chart below and have targets such as 7780 and possibly a new low below 7760.
Alternatively, if we do not see any push higher, then look to sell a break of the trend line on 1H chart as shown in a chart below. We have a support at around 7880/90 which coincides with the trend line. So, enter on a 1H close below this trend line and support. Initial target will be 7810 and medium term targets remain the same.
Remember with a data release earlier in Asian session today we saw there was a rise in unemployment rate for New Zealand from 6.2% to 6.4%, which can weigh on NZDUSD in short to medium term and coincides with our bearish view.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, EURAUD, EURCAD, EURGBP, GBPJPY, CORN, OIL and NATURAL GAS. For more details: Vladimir’s Markets Forecast
Trade safe and with some plans. Happy trading!
Vladimir
