On Friday, we had a somehow disappointing NFP number, coming short of expectation at 156K. This according to most analysts was not stellar but nonetheless a stable figure. It also came in with a confirmation that there would be no November rate hike and shifted all focus to December meeting. With 156K released, it is still within the FEDs annualized average of 180K which is not a bad figure at all. Friday’s release also showed that there was improvement of participation rate to 62.9% from 62.8% recorded in September which according to Yellen-from previous comments about labor condition means the economy is all healthy. Annualized wage growth wasn’t disappointing and showed expansion as it grew by 2.6%. A rise in participation rate put some pressure on the unemployment rate as it pushed a notch higher to 5.0%. This mixed results as always brought the market to its equilibrium after initial moves up 30 minutes into the release. Later, the market was able to regurgitate the information and we saw that move down before moving up again in the NY session.
As of yesterday, this pair opened with a gap up which was filled with the USD continuing to gain as the day progressed. This was expected as the general trend in the weekly chart is bearish after weeks of sideways movements and whipsaws in the lower timeframes.
Our aim today is to short at all highs in the 15 minute chart and after that down trend in the Asian session, we expect some few corrections and in the 15 minute chart attached, let’s look to sell at that zone marked between 1.68 and 1.0 Fibonacci levels coming in at 0.7090 and 0.7120 only when there is an overbought stochastics and a confirming bear candlestick.
So, trade as follows:
Sell Limit: 0.7090-0.7110
SL: 40 pips from point of sell.
TP: trail your profits
Today we have no major releases so look at the technical aspect and initiate trades. Have a wonderful trading day.

NZDUSD 15 Min Chart-11.10.2016

Source: Dalmas Ngetich

NZDUSD Daily Chart-11.10.2016

Source: Dalmas Ngetich

NZDUSD Weekly Chart-11.10.2016

Source: Dalmas Ngetich

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.