Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand ANZ Activity Outlook for January collapsed by 15.8%, and ANZ Business Confidence came in at -52.0. Forex traders can compare this to the New Zealand ANZ Activity Outlook for December, which plunged by -25.6%, and to ANZ Business Confidence, reported at -70.2.
US Personal Income for December is predicted to increase by 0.2% monthly, and Personal Spending to decrease by 0.1% monthly. Forex traders can compare this to Personal Income for November, which rose by 0.4% monthly, and Personal Spending, which increased by 0.1% monthly. The PCE Core Deflator for December is predicted to rise 0.3% monthly and 4.4% annualized. Forex traders can compare this to the PCE Core Deflator for November, which increased 0.2% monthly and 4.7% annualized.
The final US Michigan Consumer Sentiment for January is predicted at 64.6. Forex traders can compare this to US Michigan Consumer Confidence for December, reported at 59.7. Final Current Conditions for January are predicted at 68.6, and Final Expectations are predicted at 62.0. Forex traders can compare this to Current Conditions for December, reported at 59.4, and to Expectations, reported at 59.9. Final US Michigan Consumer Inflation Expectations for January came in at 4.4% annualized. Forex traders can compare this to Final US Michigan Consumer Inflation Expectations for December, reported at 4.4% annualized. Final US Michigan Consumer 5-Year Inflation Expectations for January came in at 3.0% annualized. Forex traders can compare this to Final US Michigan Consumer 5-Year Inflation Expectations for December, reported at 2.9% annualized.
US Pending Home Sales for December are predicted to drop 0.9% monthly. Forex traders can compare this to US Pending Home Sales for November, which plunged 4.0% monthly.
The forecast for the NZD/USD turned cautiously bearish in the short term after this currency pair reached its horizontal resistance area, and price action formed a double top. Bullish momentum is fading, as confirmed by the sideways trending Kijun-sen and Tenkan-sen. The Ichimoku Kinko Hyo Cloud shows signs of narrowing, with the Senkou Span A entering a sideways trend and the Senkou Span B moving higher. Traders should monitor the CCI after it has formed a negative divergence in extreme overbought territory followed by a breakdown below 100. This technical indicator has plenty of downside potential, and a drop below zero could spark heavy selling. Can bears regain complete 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 0.6450 to 0.6525 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6490
- Take Profit Zone: 0.6190 – 0.6245
- Stop Loss Level: 0.6575
Should price action for the NZD/USD breakout above 0.6525, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6575
- Take Profit Zone: 0.6625 – 0.6725
- Stop Loss Level: 0.6525
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
