The NZD/USD Is Approaching The .7200 Handle
Shain Vernier • 1 min read
The Kiwi is one of the few instruments on the forex showing signs of life. Bearish sentiment is the rule for today’s NZD/USD, with the USD being the favorite of intraday traders. Thus far, the Greenback is posting moderate gains against many of the majors.
There is a key economic event scheduled for just after today’s forex close that may shake up valuations of the Kiwi. The NZIER Business Confidence Index for Q1 of 2018 is due out this evening. It is one of the first big reports for New Zealand’s economy pertaining to 2018. The NZIER’s release should bolster participation levels.
At press time, the NZD/USD has broken to the bear, falling 20 pips. While not an overly strong intraday trend, sellers are dominating the action.
The .7200 handle is setting up as an important area for the rest of trading week. Price is pushing intraday lows just above this level. If the USD continues to perform with strength, the Swing Low at .7152 will come into play.
Here are the important levels to watch for the remainder of the session:
- Resistance(1): 20 Day EMA, .7245
- Resistance(2): Bollinger MP, .7254
- Support(1): Psyche Area, .7200
- Support(2): Swing Low, .7152
Overview: The limited liquidity of Friday is the story of today’s forex action. Institutional money is firmly on the sidelines as many of the big players are taking an extended Easter break. However, this dynamic is soon to change.
Upon the release of the NZIER report early in tomorrow’s session, the Kiwi will be poised to open up a bit. Stay tuned for ideas on how to take a few pips out of this market as the trading week progresses.