Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Business Manufacturing PMI for May was reported at 39.7. Forex traders can compare this to the New Zealand Business Manufacturing PMI for April, which was reported at 26.1. The US Import Price Index for May is predicted to increase by 0.6% monthly, and the US Export Price Index is predicted to increase by 0.6% monthly. Forex traders can compare this to the US Import Price Index for April, which decreased by 2.6% monthly, and to the US Export Price Index, which decreased by 3.3% monthly. Preliminary US Michigan Consumer Sentiment for June is predicted at 75.0. Forex traders can compare this to US Michigan Consumer Confidence for May, which was reported at 72.3. Preliminary Current Conditions for June are expected at 85.0, and Preliminary Expectations are predicted at 70.0. Forex traders can compare this to Current Conditions for May, which were reported at 82.3 and to Expectations, which were reported at 65.9.
The NZD/USD forecast turned bearish as forex traders realize floating trading profits. Commodity currencies enjoyed a solid advance fueled by hope for a quick economic recovery. US Federal Reserve Chairman Jerome Powell squashed those hopes, prompting a swift readjustment of positions. The sell-off, currently in its early stage, is expected to extend into its horizontal support area, which is located inside the Ichimoku Kinko Hyo Cloud. Will today’s US consumer confidence data intensify selling pressure in this currency pair? 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 0.6420 to 0.6500 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6460
- Take Profit Zone: 0.5920 – 0.6015
- Stop Loss Level: 0.6530
Should price action for the NZD/USD breakout above 0.6500 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6530
- Take Profit Zone: 0.6630 – 0.6665
- Stop Loss Level: 0.6460
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