Fundamentals:- We had a crack at this one last week but it ended up just consolidating. This week we are looking to the NZ financial stability report and the NFP to bring in some much needed volatility to get this currency pair moving. Looking at the macro prudential tools that the RBNZ use to base there report I can see that the economy is static or drifting off in most area's. The biggest concern is the Credit to GDP ratio which is dragging inflation and any chance of a rate hike in the future; this translates into a weaker NZD. The estimated figures for the NFP are looking good and with the FOMC looking at a possible hike at the next meeting further downside in this currency pair can be expected.
Technicals:- The price found resistance at 6950 which was last weeks entry point but has since tested that again. A possible fake breakout caused by short selling could push the resistance level up to the 7000 level which is going to be my next entry level. Daily, 4 hour and 1 hour charts are indicating over bought so a turn down could be imminent.
Sell limit:- 7000
stop loss :- 7050
take profit:-6850
Technicals:- The price found resistance at 6950 which was last weeks entry point but has since tested that again. A possible fake breakout caused by short selling could push the resistance level up to the 7000 level which is going to be my next entry level. Daily, 4 hour and 1 hour charts are indicating over bought so a turn down could be imminent.
Sell limit:- 7000
stop loss :- 7050
take profit:-6850
Trade active:
trade was triggered on Friday and I have moved the stop loss to break even.