On Monday, there is an increase in buyers for the NZDUSD currency pair when it reaches a price slightly above 0.5900.
…
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)]
- NZD/USD attracts some buyers above 0.5900 on Monday.
The pair currently trades last at 0.59053.
The previous day high was 0.5943 while the previous day low was 0.5885. The daily 38.2% Fib levels comes at 0.5907, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5921, expected to provide resistance.
The NZD/USD pair snaps the two-day losing streak during the early European session on Monday. The pair currently trades around 0.5916, gaining 0.23% on the day. The strength of the Kiwi is bolstered by the fresh measures from Chinese officials to recover confidence in the market.
On Sunday, the Chinese finance ministry said that the authorities would reduce the 0.1% duty on stock trading to stimulate the capital market and strengthen investor confidence. Alongside the action by the Ministry of Finance, the China Securities Regulatory Commission (CSRC) is implementing measures to bolster market confidence in listed companies after the Chinese equities index slumped to nine-month lows.
This development boosts the China-proxy Kiwi against the Greenback. However, investors will keep an eye on the Chinese Caixin Manufacturing PMI for August due on Friday. The concerns about China’s deteriorating economic conditions should dampen market optimism, which might weigh on the NZD and act as a headwind for the NZD/USD pair.
Apart from this, the chief economist of the Reserve Bank of New Zealand (RBNZ) said last week that policymakers would lower the OCR sooner than they have signaled if China experienced a more significant deceleration than the RBNZ anticipates.
On the US Dollar front, Federal Reserve (Fed) Chairman Jerome Powell stated at the Jackson Hole Economic Symposium on Friday that the central bank is prepared to hike interest rates further if required. He added that the next rate hike decision would be determined by data. Meanwhile, Cleveland Fed President Loretta Mester said that GDP and labor market data show that the economy is gaining momentum. She emphasized that the current rates are not restrictive enough to reach the inflation target and a lower growth rate would be essential to moderate inflation. The US Nonfarm Payrolls data on this Friday could offer hints about the future path of monetary policy. The stronger than expected data might lift the US Dollar and limit the upside for the pair.
Moving on, traders will monitor on the US Nonfarm Payrolls and inflation data due later this week. The market anticipated that the US economy to create 170K jobs in August. Also, the Chinese Purchasing Managers’ Indexes (PMI) will be in focus. The data will be critical for determining a clear movement for the NZD/USD pair.
Technical Levels: Supports and Resistances
NZDUSD currently trading at 0.5917 at the time of writing. Pair opened at 0.5903 and is trading with a change of 0.24 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.5917 |
| 1 | Today Daily Change | 0.0014 |
| 2 | Today Daily Change % | 0.2400 |
| 3 | Today daily open | 0.5903 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6011, 50 SMA 0.6125, 100 SMA @ 0.6152 and 200 SMA @ 0.6227.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6011 |
| 1 | Daily SMA50 | 0.6125 |
| 2 | Daily SMA100 | 0.6152 |
| 3 | Daily SMA200 | 0.6227 |
The previous day high was 0.5943 while the previous day low was 0.5885. The daily 38.2% Fib levels comes at 0.5907, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5921, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.5878, 0.5852, 0.582
- Pivot resistance is noted at 0.5936, 0.5968, 0.5994
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.5943 |
| Previous Daily Low | 0.5885 |
| Previous Weekly High | 0.5987 |
| Previous Weekly Low | 0.5885 |
| Previous Monthly High | 0.6413 |
| Previous Monthly Low | 0.6120 |
| Daily Fibonacci 38.2% | 0.5907 |
| Daily Fibonacci 61.8% | 0.5921 |
| Daily Pivot Point S1 | 0.5878 |
| Daily Pivot Point S2 | 0.5852 |
| Daily Pivot Point S3 | 0.5820 |
| Daily Pivot Point R1 | 0.5936 |
| Daily Pivot Point R2 | 0.5968 |
| Daily Pivot Point R3 | 0.5994 |
[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.
- EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
- EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group
