The New Zealand dollar is trading lower against the US dollar from the last couple of weeks. However, the NZDUSD pair is heading towards an important support area, and it is likely that the pair might find a bottom soon. There is divergence forming, which might help the pair in the short term. So, I think we should be looking for buying opportunities in the coming days.
There are several support levels on the daily chart around the 0.8310-0.8280 levels as can be seen in the chart show below. If the pair falls closer to the mentioned levels, makes a stop and form a divergence on the lower timeframe, then we can enter into a buy trade. Remember, there is a chance of one more push lower as the pair has opened with a minor new low this week.
Initial target should be around the 0.8380 level, and final target could be around the 0.8410 level. Stop should be placed below the last low after entering into the trade.
Major events scheduled in the upcoming week
The FOMC meeting minutes came in as a surprise during this past week, as the tone was more on the hawkish side. This caused a sharp upside in the US dollar and as a result the pairs such as EURUSD, GBPUSD and AUDUSD traded lower. The Fed’s Yellen speech also popped the US dollar higher. The EURUSD and GBPUSD fell to new monthly lows and it looks like that they might continue trading lower. The economic data in the UK was on the negative side during this past week, which added to the bearish pressure on the GBPUSD pair. The best-performing pair was the USDJPY, which traded above the 104.00 level.
Let us look at all major events lined up in the upcoming week.
Sunday – No economic release.
Monday – German IFO business climate index, US new home sales data and New Zealand trade balance data.
Tuesday – US durable goods orders data, CB consumer confidence and Australia’s construction work done data.
Wednesday –German Gfk consumer climate and Australia’s HIA new home sales data.
Thursday – Spanish GDP, German unemployment data, Euro zone consumer confidence, US GDP data, US pending home sales data, Japanese retail sales, Japanese unemployment, Japanese industrial production data and ANZ business confidence.
Friday –German retail sales, UK nationwide HPI, Euro zone CPI, Euro zone unemployment data, Canadian GDP and Chicago PMI.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURGBP, GBPCHF, USDJPY, EURJPY, AUDJPY, AUDUSD, EURAUD, NZDUSD, AUDNZD, USDCAD and AUDCAD.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!
