The New Zealand dollar has recently struggled to break the 0.8840 level against the US dollar, which is also just around the all-time high. The NZDUSD pair is likely to continue trading lower in the coming days. So, we should be looking for short-term sell opportunities. I think selling with a break looks a good option moving ahead.
There is a bullish trend line forming on the 4 hour chart for the NZDUSD pair. There is an important support area around the 0.8760-50 levels. So, this confluence area holds the key for the pair in the short term. Once the pair trades lower, breaks the mentioned support area and closes below it, then we can jump into a sell trade. Remember, as long as the pair is trading below the last high created we should look for selling opportunities.
Initial target should be around the 0.8680 level, and final target could be around the 0.8650 level. Stop should be above the last high created.
Reviewing yesterday’s events and trades
Yesterday, there was no major risk event scheduled in the US. So, the market mostly consolidated in a range except for the British pound. The British pound was seen trading lower as expected against the US dollar yesterday. The GBPUSD pair fell below an important support level to trade as low as 1.7069. The EURGBP pair was also affected, as the pair traded higher and challenged the 0.7980 resistance level. However, both the pairs recovered after the UK inflation data release.
Fundamental Outlook for the day
Today, there a lot of high-risk events scheduled during the NY and the London session. During the NY session, the US retail sales data and business inventories data will be published. Moreover, the most important event for the day will be the Fed’ Yellen speech. The market looks like is lining up for a lot of moves ahead of her speech. So, there can be swing moves during her speech, and we need to be very careful trading around this particular event. Later during the next Asian session, the Chinese GDP data will be published, which is expected to remain stable is 7.4%.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, AUDUSD, USDCAD, EURCAD, EURAUD, EURJPY and SILVER.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
