Talking Points
- NZDUSD- August opening range is set below critical resistance
- Updated targets & invalidation levels
- Event Risk on Tap This Week
NZDUSD Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- NZDUSD sets monthly opening range below critical resistance at 6602/30 (bearish invalidation)
- Break of monthly opening range to set medium-term bias
- Breach targets resistance objectives at 6663/70 & 6767
- Support at the lower median-line parallel- (bullish invalidation)
- Break below targets 6466 & 64.13
- Waning momentum into the lows risks correction higher with breach above 6630
- Pending RSI support trigger in play- break would be bearish
- Event Risk Ahead: New Zealand Producer Price Index (PPI) tonight andU.S. Consumer Price Index (CPI) & FOMC Minutes tomorrow
NZDUSD 30min
Notes: Kiwi may be attempting to turn higher with the pair setting the weekly & monthly opening ranges just below a critical resistance zone at 6302/33. A median-line structure off the monthly lows has us constructive here near-term but we’ll need a breach/close above this key region to shift the medium-term bias higher.
Bottom line: we’ll remain constructive while above the lower MLP / Friday’s lows at the 6512 with a breach above resistance targeting subsequent objectives at 6663 & 6694. A quarter of the daily average true range yields profit targets of 22-24pips per scalp. New Zealand PPI data later tonight could spur some volatility but the more significant event risk comes tomorrow with the release of U.S. CPI data and minutes from the latest FOMC policy decision.
For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk
Relevant Data Releases
Other Setups in Play:
- Webinar: USD Scalps Hinge on CPI- Setups in Play this Week
- GBPNZD Marks Another Failed Attempt- Short Scalps Favored Sub 2.3942
- GBPAUD Putting in a High or Time to Buy?
- CADJPY 94.50 - Line in the Sand
- Webinar: Battle Lines Drawn- USD Scalp Setups in Focus this Week
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)
Interested in learning about Fibonacci? Watch this Video
