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Trading Outlook – NZD/USD

Jarratt Davis
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www.jarrattdavis.com

Originally Updated: 06:30GMT

Currency Pair: NZD/USD

Sentiment: Bearish

Market focus:

In today’s trade set up we will be focussing on short term selling opportunities on the NZD/USD.

Fundamentals:

The USD rallied across the board after the FOMC statement released yesterday surprised the market with a more hawkish tone. With an improving labour market seeing unemployment falling and solid job gains the Fed ended its QE programme. It did however say that interest rates would be kept low for a considerable time.

Turning to New Zealand we saw the central bank keep interest rates on hold with RBNZ Governor Graeme Wheeler saying current levels remain unjustified and unsustainable which continue to constrain growth in the tradable sector.

Technicals:

We have a nice confluence zone at 0.7840-0.7850. This should offer short term resistance for any pullback.

Stop loss could be placed at 0.7880

First take profit target: 0.7755

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