NZD/USD Limit Sell at 0.7130

The New Zealand Dollar extended gains above the $0.7050 level as risk appetite returned to the markets.

No major data is due in the NY session morning where traders will take queue from stock markets. The pair could extend gains on a positive Wall Street and ahead of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision.

Focus will be centered on the statement as consensus sees no change in the rate at 2.50%. In the statement, investors will be looking for signs of future policy decisions and the Bank’s view on domestic and global developments.

Trend:

Weekly : Sideways
Daily: Sideways
Hourly: Bullish

Support & Resistance:

From current levels, 0.7058, the pair finds initial resistance at 0.7081, followed by 0.7132, and 0.7180.

Key support to watch is the 0.7035 where a break of such would open targets to the psychological 0.7016 level, followed by 0.6986 and 0.6943.

Strategy:

NZD/USD may extend gains above the 0.7100 level but momentum should dissipate above.

Limit Sell @ 0.7130 Targets: T1 0.7110 – T2 0.7049 Risk: 0.7185
* After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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