GBPNZD Marks Another Failed Attempt- Short Scalps Favored Sub 2.3942
- GBPNZD fails at yearly high- August opening range is set
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- GBPNZD fails second attempt at a breach into new highs
- Risk remains to the downside sub-2.3942 (high-day close) – bearish invalidation
- Key support objectives at 2.3346 & 2.3206
- Momentum divergence into last month’s high- hold sub 60 - bearish
- Event Risk Ahead: New Zealand Retail Sales tonight
Notes: GBPNZD has continued to fail at the yearly high with a pair of median-line structures off the highs keeping the short-side in focus near-term below confluence resistance at 2.3835. Interim support rests at 2.3713 backed by 2.3520/30. Key support objectives eyed at confluence regions into 2.3363 & 2.3206.
We’ll be looking sell rallies / RSI support trigger breaks while sub- 2.3835 with a breach above the high-day close at 2.3942 needed to put the long-side scalp bias back into play. Keep in mind that this is a wider range scalp with a quarter of the daily average true range yielding profit targets of 76-80pips per scalp. Caution is warranted heading into New Zealand event risk tonight with the release of the 2Q Retail Sales figures likely to fuel added volatility in the kiwi crosses.
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Relevant Data Releases
Other Setups in Play:
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---Written by Michael Boutros, Currency Strategist with DailyFX
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