- Stop loss 0.6600
- Entry level 0.6695
- First Target at 0.6812
- Next target to test at 0.6879, 0.6967
NZD/USD dropped to 0.66187 but recovered strongly as support was found on the weekly chart. A fall from 0.7738 might be finished already. Initial bias is mildly on the upside for retesting at 0.6812 high first. The development argues that rebound from 0.66187 might still be in progress. A break from 0.6812 will target 23.6% retracement from 0.6879 to 0.6967 levels.
On the downside, below 0.6600 will turn its focus back to downside to create new lows and dampen our bullish view. Overall view on the pair is upward bias, medium term rise from 0.6600 has initiated and focus shall be on correction at 0.6695 for re-entry.
With price action producing a two bar reversal on the support area, and basing our analysis on the structure of trend line, we can see some rebound happening. We are sticking to the view for the long term bias on pair and is expected from 0.6695 to the 0.6911 minor resistance level later. Break here should be targeted more above 0.6967. Outlook remains bullish for the week.
- The Business New Zealand PMI
- Consumer Price Index released by the Statistics New Zealand
- Monthly Budget Statement for the US
- The Retail Sales released by the US along with Import Price
- Industrial Production, Capacity utilization and Producer Price Index followed by EIA crude oil
- Initial job claims with continuing job claims followed by Janet L. Yellen Speech.
Area of Interest
- Support level at 0.66 finding strong support on the weekly chart.
- Two bar reversal at support area which is also the flip area.
- Pair finding support on trend line and price action holding the levels.
- Key area to target to the upside shall be at 0.6873 also the fib level of 23.6% for the week.
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