Even without any specific catalyst, the New Zealand dollar continues to be strong compared to other major currencies. This is due to the anticipation of Chinese economic stimulus.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• Despite the absence of a catalyst, NZD maintains dominance among major currencies fueled by expectations of Chinese economic stimulus.

The pair currently trades last at 0.62077.

The previous day high was 0.6242 while the previous day low was 0.6163. The daily 38.2% Fib levels comes at 0.6193, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6212, expected to provide resistance.

The New Zealand Dollar (NZD) remains the strongest currency amongst the majors, despite the lack of a catalyst, amid speculations of further stimulus on China’s economy, while traders brace for Wednesday’s release of the US Federal Reserve monetary policy decision. The NZD/USD is exchanging hands at 0.6191 after hitting a daily low of 0.6155.

Market sentiment is mixed, as Wall Street opens with a positive tone. At the same time, European bourses begin to recover after the worst-than-expected Eurozone (EU) and UK PMI Manufacturing data suggest a global economic slowdown could trigger a shift in central bank tightening intentions.

US S&P Global PMI data showed a decent improvement in Manufacturing activity, advancing from 46.3 to 49, above estimates, while Services PMI dipped to 52.4 from 54.4 in June, below forecasts of 54. Consequently, the Composite PMI index slid to 52 in July from 53.2 in June. The data failed to boost appetite for the US Dollar (USD) against the NZD, which stands positive in the day.

However, the greenback remains trading higher as shown by the US Dollar Index (DXY), which tracks the buck’s performance against a basket of currencies, except for the NZD, which climbs 0.22%, at 101.305, propelled by the short-end of the curve US Treasury bond yields.

On the New Zealand front, an empty agenda left traders adrift to China and US dynamics. Firstly, China’s top leaders signaled that more stimulus is coming, as the country could miss its growth projections of 5% through 2023.

That, alongside Fed’s decision, would give direction on the pairs. A hike of 25 bps is inevitable, and the tone of the statement and Chair Jerome Powell’s press conference is most awaited, as investors would look to hawkish or dovish remarks, so the NZD/USD could gather some direction.

From a technical perspective, the NZD/USD is range-bound, slightly tilted downwards as it trades below the 200-day Exponential Moving Average (EMA), suggesting that further downside is expected. Furthermore, the break below the 100 and 50-day EMAs, at 0.6202, 0.6200, opened the door towards 0.6150, followed by a test of the 0.6100 mark. Conversely, a recovery above 0.6200 could open the door for a U-turn, which the Fed’s decision could trigger. Key resistance levels lie at 0.6200, 0.6220/30m, and then at June 16 daily high at 0.6247. With those levels cleared, the NZD/USD might challenge May’s 23 high at 0.6302.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6207 at the time of writing. Pair opened at 0.6168 and is trading with a change of 0.63 % .

The pair is trading below its 20 Daily moving average @ 0.621, above its 50 Daily moving average @ 0.617 , above its 100 Daily moving average @ 0.6195 and above its 200 Daily moving average @ 0.6206

The previous day high was 0.6242 while the previous day low was 0.6163. The daily 38.2% Fib levels comes at 0.6193, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6212, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.614, 0.6112, 0.6061
• Pivot resistance is noted at 0.6219, 0.627, 0.6298

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...