NZDUSD at a very decisive zone! Bullish correction bias?
Updated
Hello Traders,
Today we want to share with you the
NZDUSD as it currently flirts with a very decisive zone around 0.697!
The current fall within theNZDUSD is on one hand caused by the USD strengths, but more importantly because of the Commodity weakness which lead to the New Zealand Dollar weakness. Long-term sentiment within the NZD is more likely bearish as Graeme Wheeler (Governor of the Reserve Bank of New Zealand) always point out the need of a devaluation of the NZD to increase growth. This is caused by the current global situation surrounded by uncertainty and downside risk as China still seems to show some growths weaknesses. New Zealand however, is currently traded in a big wedge formation on mid-long-term as it seems that in the next 3-6 month we might see a significant break to the downside.
After the sharp fall in theNZDUSD it seems that market may find temporary support around the 0.697 zone and will initiate a long move towards 0.712 or even higher.
Supported by a significant intermarket sign, which points a potential inflow of capital very soon! This may underline this setup.
Our intermarket analysis always helps us time our trades better. We see a good timing of a potential long trade as it seems to hit outflow lows currently. Our measurement is currently the ratio of NZDUSD vs. the SPX500 , NZDUSD vs. Gold and NZDUSD vs. the 10Y U.S. Bonds . Our inter-markets indication gave good accuracy in the past for timing our trades at price relevant levels. However, keep in mind that one of our intermarket indications still remains in outflow territory however with a sign to inflow signs. Therefore, it could be possible that the NZDUSD may tumble around current zone for a little before initiating bullish correction move.
Keep in mind this week on Friday we will receive important US employment data which may be decisive for next week's FED interest rate decision. Current odds are around 84.1%. So if we see due to these events a daily close with more than 0.25% below the 0.697 zone, our potential long setup may be invalid and we need to evaluate again.
We will be looking for interesting entry levels and keep you updated once we see interesting signs of turning north again.
As always, trading is a probability game nobody is 100% right and always use a stop-loss when trading. Trade with care.
Cheers
Today we want to share with you the
NZDUSD as it currently flirts with a very decisive zone around 0.697!The current fall within the
NZDUSD is on one hand caused by the USD strengths, but more importantly because of the Commodity weakness which lead to the New Zealand Dollar weakness. Long-term sentiment within the NZD is more likely bearish as Graeme Wheeler (Governor of the Reserve Bank of New Zealand) always point out the need of a devaluation of the NZD to increase growth. This is caused by the current global situation surrounded by uncertainty and downside risk as China still seems to show some growths weaknesses. New Zealand however, is currently traded in a big wedge formation on mid-long-term as it seems that in the next 3-6 month we might see a significant break to the downside.After the sharp fall in the
NZDUSD it seems that market may find temporary support around the 0.697 zone and will initiate a long move towards 0.712 or even higher. Supported by a significant intermarket sign, which points a potential inflow of capital very soon! This may underline this setup.
Our intermarket analysis always helps us time our trades better. We see a good timing of a potential long trade as it seems to hit outflow lows currently. Our measurement is currently the ratio of NZDUSD vs. the SPX500 , NZDUSD vs. Gold and NZDUSD vs. the 10Y U.S. Bonds . Our inter-markets indication gave good accuracy in the past for timing our trades at price relevant levels. However, keep in mind that one of our intermarket indications still remains in outflow territory however with a sign to inflow signs. Therefore, it could be possible that the NZDUSD may tumble around current zone for a little before initiating bullish correction move.
Keep in mind this week on Friday we will receive important US employment data which may be decisive for next week's FED interest rate decision. Current odds are around 84.1%. So if we see due to these events a daily close with more than 0.25% below the 0.697 zone, our potential long setup may be invalid and we need to evaluate again.
We will be looking for interesting entry levels and keep you updated once we see interesting signs of turning north again.
As always, trading is a probability game nobody is 100% right and always use a stop-loss when trading. Trade with care.
Cheers
Note
Seems that NZDUSD could make another leg lower before it goes higher.
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