The New Zealand dollar managed to gain some buyers against the US dollar and the Japanese yen. However, the upside is limited considering the fact of the RBNZ bearish and intervention stance. There can be a nice selling opportunity in NZDJPY. There can be two ways to sell NZDJPY. One is selling rallies around the 200 day moving average with a bearish divergence and the other one is explained below.
There is a triangle formed on the 4 hour chart of the NZDJPY pair, which might act as a catalyst in the short term. There is an important support around the 84.30 level, which also coincides with the triangle support area. So, if the pair moves from the current levels, breaks the mentioned support area and closes below it, then we can enter into a sell trade.
Initial target should be around the 83.20 level, and final target could be around the 82.40 levels. Stop should be placed above the broken support area.
Reviewing recent events and trades
The German IFO business climate release was the highlight of the London session, which missed the expectation and came in at 103.2. The Euro traded lower after the release. However, the US pending home sales data was released during the NY session, which missed the mark to register a rise of 0.3%, compared with the forecast of a 0.5% gain. The Euro managed to trim the losses and traded back higher, but the EURUSD is facing a tough resistance around the 1.2720-40 area.
Fundamental Outlook for the day
Today, the US durable goods orders data, the CB consumer confidence and the S&P/Case-Shiller House Price Index will be released during the NY session. The CB consumer confidence is expected to rise from 86 to 87. If at all it misses the forecast, then the US dollar might lose more ground in the short term. Moreover during the next Asian session, the Japanese industrial production data will be released, which might cause some moves in the yen pairs. It is worth noting that the recent Japanese data like retail sales data came better than expectation.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
