Categories: Technical Analysis

More strength to follow for the NZDUSD

The New Zealand dollar remains one of the best performers against the US dollar, as the NZDUSD pair continues to climb higher. The pair is currently under a correction, and I think it might continue to trade higher in the short term. There is a triangle forming on the 4 hour chart for the pair. If the pair breaks the triangle resistance zone and settles above it, then we can jump into a buy trade.

Alternatively, if it breaks it down, then there are several supports on the way down for the pair. If the pair falls from the current levels, makes a stop and creates a bullish divergence, then we can enter into a buy trade. Remember, wait for the pair to settle around the support zone before jumping into a trade.

Initial target should be around the 0.8740 level, and final target could be around the 0.8780 level. Stop should be placed below the broken triangle in the first scenario, and below the 0.8550 level in the second scenario.

Reviewing yesterday’s events and trades
Yesterday, during the London session, the Euro zone CPI data was released. The outcome was broadly in line with the expectation, as the Euro zone inflation fell to 0.5%. The Euro was seen trading a touch higher after the release, but the momentum was still lagging. Moreover, the economic data released during the NY session was above or around the expectation, which resulted in a mover higher in the US dollar.

Fundamental Outlook for the day
Today is an important day as the US inflation data will be published during the New York session. The market is expecting the US inflation to remain around the 2% level. If the outcome beats the expectation, then the US dollar might gain in the coming session. Alternatively, a miss could result in a dollar selling. Moreover, the US building permits and housing starts data will also be released around the same time, which could add to the volatility during the NY session.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURGBP, GBPUSD, EURNZD, EURJPY, OIL and SILVER.
Get it HERE: Vladimir’s Markets Forecast

Have a great green week friends. Happy trading!

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.