Daily NZDUSD Forex Analysis
Hello Traders, We are into a special and a very fundamental week so to speak, we have the Brexit Vote referendum coming up on Thursday-which by the way will cause ripples throughout the currency and equity markets irrespective on what the Britons choose to do and not much news really from the US which we can say can influence this pair other than the normal Existing home sales and the weekly Unemployment claims and Crude oil inventories which will be released on Wednesday and Thursday respectively. But well, we shall focus on the Brexit this week, Brexit polls were released over the weekend and there seems to be a change as more people are leaning towards the Remain camp at 46% with 10% of the surveyed persons remaining undecided. This is a remarkable change in sentiment from the last two weeks which was skewed on the Leave camp. This change of sentiment saw almost all GBP pairs and affiliated commodity pairs opening with a gap up, with NZDUSD opening with a 20 pip gap which was quickly closed and price not surprising rebounding from the yearly 50% Fibonacci level. Let’s check the charts for more insight: Daily Chart Analysis In the daily chart two things are happening: the 50% retracement level remains as our support and then the second thing, there is a strong trend continuation as shown in the weekly chart. There is an obvious upper BB hugging by the candle stick and last week’s doji and accumulation around the 5 month resistance turned support line gave rise to that long lower lick showing bullish momentum is gathering. This means one thing, we shall go to the 4 hour chart and look to buy anywhere in the green zone I have marked which should happen before Wednesday if there is any price correction from the current highs. So, Possible buy limit if you are a swing trader:-0.705-07-This week’s opening TP-0.725 SL-0.7
There was nothing that happened on Friday but pure accumulation with price moving in horizontally in a tight 50 pip channel, so we shall use Thursday’s price action. In this case, we are seeing a price retracement from 20 pips from Thursday’s high. Our game plan will be very simple, price will correct, that undoubtedly since we had a bullish Asian session. We shall look to buy at today’s opening and that falls in the 100% Fibonacci level. Buy Limit-0.707 SL-0.704 TP-0.713
About The Forex Analyst
I have been trading Forex and commodities for the past 3 years. [email protected] for further discussions.