NZD/USD – Weekly Analysis for New Zealand Binary Options Brokers
The US Dollar was trading mixed ahead of tonight’s President TruTrumpmo speech to congress. It was a rollercoaster ride, starting with a high anti-dollar sentiment that was quickly reversed on the comments from 3 FOMC Presidents, Harker, Dudley and Williams. All were more positive than expected on the question of a March rate hike and so the dollar responded accordingly and reversed the prior losses.
Now it remains to be seen what will President Trump reveal during his speech. But, given the fact that traders are upbeat on the Dollar at the moment the rally could extend and NZDUSD could trade lower.
However, traders should keep in mind that this event is expected to be highly volatile so no one can for sure say how the market will react to Trump’s comments. It’s best to either stay out of the market or at least keep your stops tight in case the market goes against your positions.
In terms of the New Zealand binary options, despite the most likely continued US Dollar strength this year, the NZD should remain supported as well keeping NZDUSD exchange rate mostly in a broad range. From this standpoint, at the moment that range is likely to be between 0.68 and 0.74.
The main reasons for the strength of the New Zealand Dollar are relative political stability (compared to elsewhere), high-interest rates (high yielding currency), rising commodity prices and rising inflation.
The pair is trading in a range and depending on the epilog of the fundamental events this week we will probably witness either a bullish or bearish breakout.
Strong resistance is at 0.73 provided by the falling trendline, and support is at 0.6850 – 0.69 area provided by December lows.
NZDUSD Daily chart – Still consolidating after the strong move in January
A zoomed in view of this 100 pip range gives us the short-term perspective. Support is at 0.7130 and resistance is at 0.7335. A range is best to be traded when price breakouts of it, or at least near the bottom or top of the range.
NZDUSD 4h chart – Zoomed in view of the range
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