Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Unemployment Rate for the third quarter was reported at 3.4%. Economists predicted an Unemployment Rate of 3.9%. Forex traders can compare this to the Unemployment Rate for the second quarter, reported at 4.0%. The Unemployment Change for the third quarter increased 2.0%. Economists predicted an increase of 0.4%. Forex traders can compare this to the Unemployment Change for the second quarter, which increased 1.0% quarterly. The Participation Rate for the third quarter was reported at 71.2%. Economists predicted a Participation Rate of 70.6%. Forex traders can compare this to the Participation Rate for the second quarter, reported at 70.5%. The Labor Cost Index for the third quarter increased 0.7% quarterly and 2.5% annualized. Economists predicted an increase of 0.8% and 2.6%. Forex traders can compare this to the Labor Cost Index for the second quarter, which increased 0.9% quarterly and 2.0% annualized.
UK Nationwide House Prices for October are predicted to increase 0.4% monthly and 9.3% annualized. Forex traders can compare this to UK Nationwide House Prices for September, which increased 0.1% monthly and 10.0% annualized.
The Final UK Markit/CIPS Services PMI for October is predicted at 58.0, and the Final UK Markit/CIPS Composite PMI is predicted at 56.8. Forex traders can compare this to the UK Markit/CIPS Services PMI for September, reported at 55.4, and the UK Markit/CIPS Composite PMI reported at 54.9.
The forecast for the GBP/NZD turned bullish after this currency pair stabilized at support with improving sentiment. After halting its correction, the Tenkan-sen and the Kijun-sen turned sideways, confirming the lack of short-term selling pressure. The Ichimoku Kinko Hyo Cloud maintains a long-term bearish trend, but the CCI completed a breakout above -100 and exited extreme overbought territory. A minor reversal is likely before the uptrend is expected to continue, and traders should buy the dip. Can bulls add to the positive developments in the GBP/NZD and pressure price action into its next horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the GBP/NZD remain inside the or breakout above the 1.9065 to 1.9185 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9125
- Take Profit Zone: 1.9610 – 1.9700
- Stop Loss Level: 1.8980
Should price action for the GBP/NZD breakdown below 1.9065 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8990
- Take Profit Zone: 1.8625 – 1.8700
- Stop Loss Level: 1.9065
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