Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Westpac Consumer Confidence for the fourth quarter was reported at 99.1. Forex traders can compare this to New Zealand Westpac Consumer Confidence for the third quarter, reported at 102.7.
The New Zealand Trade Balance for November was reported at -NZ$864M monthly and at -NZ$6,040M annualized. Forex traders can compare this to the New Zealand Trade Balance for October, reported at -NZ$1,302M monthly and -NZ$4,900M annualized. Exports for November were reported at NZ$5.86B and Imports at NZ$6.73B. Forex traders can compare this to Exports for October, reported at NZ$5.36B, and Imports, reported at NZ$6.66B.
The US Leading Index for November is predicted to increase by 0.8% monthly. Forex traders can compare this to the US Leading Index for October, which increased 0.9% monthly.
The forecast for the NZD/USD turns cautiously bullish after selling pressure eases at its horizontal support area. Confirming the absence of bearishness are the Tenkan-sen and the Kijun-sen after they a sideways trend. The Ichimoku Kinko Hyo Cloud maintains its downtrend, but the Senkou Span B shows early signs of stabilizing. After the CCI dropped into extreme oversold territory, a positive divergence started to form. Traders should monitor this trend and wait for a breakout above -100 before buying this currency pair. Will bulls regain control over the NZD/USD and force price action into its horizontal resistance 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 breakout above 0.6700 to 0.6765 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6715
- Take Profit Zone: 0.6975 – 0.7040
- Stop Loss Level: 0.6640
Should price action for the NZD/USD breakdown below 0.6700, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6640
- Take Profit Zone: 0.6510 – 0.6550
- Stop Loss Level: 0.6700
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