Scalping NZDUSD Opening Range- 6630 Resistance Remains Key Hurdle
- NZDUSD- August opening range is set below critical resistance
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- 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
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.
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Relevant Data Releases
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---Written by Michael Boutros, Currency Strategist with DailyFX
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