Hello Traders,
The NZD has been on the firing line since after the US elections losing massive grounds against major currencies like the EURO, GBP and USD. This was expected considering the fact that the USD safe haven status was threatened by Trump election and expected policies and the general uncertainty surrounding the US future.
For this currency pair, there has been a turnaround for the GBP which has been gaining ground after Brexit and that mini Flash that occurred on 07.10.2016. It also looks like there is renewed confidence amongst British manufacturing sector since capital is cheaply available. This has strengthened the labor conditions which has been slumping Pre-Brexit and before rate cuts occurred. As for the NZD, things seems to be turning for the worse, Foreign Exchange differentials seems to be attracting capital from other economies making the NZD more expensive and therefore affecting export and keeping the non-tradable inflation low. This has overly made the headline inflation low despite easing and the bubble within the housing sector. Dairy prices and other exports are expected to rise in the medium to long term especially if US hike their interest rates.
From my last post, any strong break above 1.76 and above the resistance trend line in the daily chart will mean a beginning of an uptrend. This will only happen after this week’s candlestick closes with a strong bullish bar which closes above that 1.755 level. The monthly chart stochastics is oversold and a buy signal has been formed though the downward momentum is strong considering how the candlesticks hug the lower BB. Early break outs in the weekly chart above 1.76 will likely mean change of trend now that stochastics in the weekly chart is also oversold.
For today, since we don’t have lots of fundamentals, look to trade as follows:
Buy: 1.7485
Stop Loss: 1.736
Take Profit: Trail your profits.
Have a good trading day and a nice weekend.

GBPNZD 4HR Chart-11.11.2016

Source: Dalmas Ngetich

GBPNZD 15 Min Chart-11.11.2016

Source: Dalmas Ngetich

GBPNZD Daily Chart-11.11.2016

Source: Dalmas Ngetich

GBPNZD Monthly Chart-11.11.2016

Source: Dalmas Ngetich

GBPNZD Weekly Chart-11.11.2016

Source: Dalmas Ngetich

4 thoughts on “RESISTANCE TREND LINE BROKEN IN THE DAILY CHART-GBPNZD DAILY ANALYSIS FOR 11.11.2016”

  1. Maryna says:

    Stunning trade Dalmas. I have been buying this pair from the 1.67300 support and exited my trade on Friday at 1.7640. Your posts are great and it also confirmed to me that I was still on the right track with my trade as it went up to the Daily resistance zone.

  2. Scalping alert for GBPNZD, long 1.76, Stop Loss: 1.7560 Take Profit: 1.7720. those are 120 quick pips

  3. Maryna says:

    Thanks Dalmas!!

    1. Maryna says:

      Hi Dalmas, I didn’t take the scalp trade yesterday and it actually took out the SL, but I took the trade today when GBP shot up and it ended up being a super trade and I took profit at 1.7770. Thanks for the heads up on this one!

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