We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The tension from March continues to subside, allowing for the $USD to slide to fresh two-month-lows. Get your currencies market update from @JStanleyFX here: https://t.co/bRSRjUqg6Z https://t.co/Q35YpIZEd2
  • López Obrador hopes #USMCA will help tighten trade relationships between the US and Mexico. Get your currencies market update from @HathornSabin here: https://t.co/bZrUKSCGaS https://t.co/MZ7UoiWWRj
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/sofO135ElG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
  • The @ecb will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the #Euro a lift. Get your currencies market update from @MartinSEssex here: https://t.co/I4PbmJNG1z https://t.co/hu6Ld1KdDB
NZDUSD Weekly Opening Range Trade- Longs at Risk Sub 8700

NZDUSD Weekly Opening Range Trade- Longs at Risk Sub 8700

2014-04-14 19:59:00
Michael Boutros, Strategist
Share:

Talking Points

  • NZDUSD stalls at fresh multi-year highs
  • Momentum divergence warns of possible exhaustion
  • Weekly open taking shape above key support- break to validate scalp bias

NZDUSD Daily Chart

Forex-NZDUSD-Weekly-Opening-Range-Trade--Longs-at-Risk-Sub-8700_body_Picture_2.png, NZDUSD Weekly Opening Range Trade- Longs at Risk Sub 8700

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • NZDUSD Fails to hold above initial April opening range high at 8700
  • Continued daily RSI divergence, ongoing for nearly a month- bearish
  • Support objectives at 8630, 8580 & 8512- bullish invalidation
  • Resistance at 8700- bearish invalidation
  • Breach targets key resistance range 8762/93
  • Daily RSI support / breakout trigger(s) pending
  • Event Risk Ahead: US & New Zealand CPI tomorrow, Fed’s Beige Book on Wednesday

NZDUSD Scalp Chart

Forex-NZDUSD-Weekly-Opening-Range-Trade--Longs-at-Risk-Sub-8700_body_Picture_1.png, NZDUSD Weekly Opening Range Trade- Longs at Risk Sub 8700

Notes: A key outside reversal day at multi-year highs on the first of the month initially shifted our focus to the downside on NZDUSD heading into start of the April trade. The subsequent reversal and failure to hold above the initial April 1st high at the 87-handle and compelling daily RSI divergence has me looking for a near-term high here. As we open the week, prices look to be in consolidation with a series of lower highs and higher lows and we’ll look for a breakout for further guidance on our near-term directional bias. Daily RSI does have some room to the topside so I still wouldn’t put it past this thing to make another run at the highs.

Bottom line: the weekly opening range is set just above a key Fibonacci confluence at 8630 with a break below shifting our focus into subsequent support targets heading into the close of the week against 8700. Although the weekly opening range high comes in at 8692, the 61.8% retracement of the decline off the highs comes in just higher at 8698 and we will use this threshold as our topside limit. A breach/close above invalidates our bearish outlook and looks to challenge the 2014 highs made last week with more substantial resistance seen higher at 8760/93. Use caution heading into the New Zealand / US inflation prints over the next 24-hours Follow the progress of this trade setup and more throughout the trading week with DailyFX on Demand.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Key Threshold Grid

Entry/Exit Targets

Timeframe

Level

Significance

Bearish Invalidation

30min

8693/98

61.8% Retrace / Weekly ORH

Break Target 1

30min

8719

78.6% Retracement

Break Target 2

30min

8745

2014/Monthly High

Break Target 3

Daily / 30min

8762/92

8/8/2011 Close (High Day) / 1.618% Fib Ext

Support Target 1

Daily / 30min

8675

4/10 Close / 2013 High / Soft Pivot

Bullish Invalidation

30min

8623/30

50% Retrace / 61.8% Ext / Weekly ORL

Break Target 1

30min

8602

61.8% Retracement

Break Target 2

Daily / 30min

8583

100% & 61.8% Ext(s) / May 2013 High

Break Target 3

30min

8562

78.6% Retracement

Break Target 4

30min

8540

88.6% Retracement

Break Target 5

Daily / 30min

8513

Monthly ORL / Oct 22nd Close (High Day)

Break Target 5

Daily

8430/52

Sept & Jan Highs / 61.8% Retracement

Average True Range

Daily (20)

70

Profit Targets 16-18pips

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars Tuesday-Thursday this week on DailyFX Plus (Exclusive of Live Clients) at 12:30 GMT (8:30ET)

Interested in learning about Fibonacci? Watch this Video

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.