Talking Points
NZDUSD testing support- Shorts favored sub-6588
Updated targets & invalidation levels
Event Risk on Tap This Week
NZDUSD Daily
Chart Created Using FXCM Marketscope 2.0
Broader Technical Outlook
NZDUSD testing interim support at September high 6455
Break lower targets 6391 / parallel support
Subsequent support targets at 6271 & 6235
Interim resistance 6519backed by 6587– bearish invalidation
Daily RSI resistance trigger pending- Breach would be bullish near-term
Key Event Risk Ahead: US Housing Starts & FOMC Minutes and New Zealand PPI tomorrow
NZDUSD 30min
Notes: Kiwi has been trading within the confines of these parallels since the start of the month with the decline now testing interim support at the September highs at 6455. Interim resistance stands at 6488 with the immediate focus remains weighted to the short-side while below 6514/19. A break lower targets 6424 & the 76.4% retracement at 6391. Note that the second measured parallel converges on this level into the close of the week.
A breach above median-line resistance shifts the focus back to the topside targeting 6566 and last week’s high at 6587- (broader bearish invalidation). A quarter of the daily average true range (ATR) yields profit targets of 20-22 pips per scalp. Added caution is warranted heading into the release of US Retail Sales & the FOMC minutes tomorrow with the events likely to fuel volatility in USD crosses.
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Relevant Data Releases Next Week
Other Setups in Play:
Webinar: USDOLLAR Primed for Uptrend Continuation
EUR/CAD Rebound Faces Test at Monthly Open
EUR/JPY on the Cusp of Important Move
AUD/JPY Flirting with Pivotal Support
Webinar: Post NFP Setups Play- Sterling Crosses at Risk
—Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or ClickHere to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Deskat 12:30 GMT (8:30ET)
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Source: Daily fx