Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Performance of Services Index for July came in at 44.6, and the New Zealand Performance of Composite Index at 44.3. Forex traders can compare this to the New Zealand Performance of Services Index for June, reported at 40.7, and the New Zealand Performance of Composite Index at 40.9.
New Zealand RBNZ Offshore Holdings for July came in at 56.3%. Forex traders can compare this to New Zealand RBNZ Offshore Holdings for June, reported at 57.2%.
The US Leading Index for July is predicted to drop 0.4% monthly. Forex traders can compare this to the US Leading Index for June, which decreased 0.2% monthly.
The forecast for the NZD/USD turned cautiously bearish after this currency pair advanced into its horizontal resistance area. Short-term volatility could increase following a bullish crossover of the ascending Tenkan-sen and the descending Kijun-sen. The bearish crossover of the Ichimoku Kinko Hyo Cloud adds downside pressure, with the Senkou Span A moving higher but below the flat Senkou Span B. Traders should also monitor the CCI in extreme overbought territory, where it could record a lower high. A breakdown below may trigger the sell-off, and this technical indicator has plenty of downside potential. Can bears regain control over the NZD/USD and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the NZD/USD remain inside the or breakdown below the 0.6055 to 0.6100 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6080
- Take Profit Zone: 0.5855 – 0.5900
- Stop Loss Level: 0.6155
Should price action for the NZD/USD break out above 0.6100, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6155
- Take Profit Zone: 0.6215 – 0.6255
- Stop Loss Level: 0.6100
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