GBP/NZD Rebound in Jeopardy as RBNZ/BOE Rate Decisions Loom
- GBPNZD testing key support- Weekly opening range in focus
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Notes: Friday’s decline saw a prefct tag of the 100% extension of the decline off the September high at 2.2313 before reversing higher with the rally now attempting to breach basic trendline resistance off the November high. If the breakout is validated, look for reisstance at 2.2822/51 backed by our broader bearish invalidation level at 2.3137. Key support remains at 2.2281-2.2313 with a break lower
As we approach the holidays and thus illiquid markets, it’s worth reviewing principles that help protect your capital. We call these principles the "Traits of Successful Traders.”
Notes: The pair broke above channel resistance and has now tested it as support. Immediate focus remains higher while above the trendline with a breach above the weekly opening range high at 2.2706 needed to validate the breakout. Subsequent resistance objective are eyed at 2.2819, 2.2887 & 2.2975.
A break back below the TL invalidates our near-term outlook with such a scenario targeting subsequent support objectives into the 2.2322 / median-line support. Keep in mind that this is a wider range setup with a quarter of the daily average true range yielding profit targets of 57-61 pips per scalp. Added caution is warranted heading into event risk later this week with both the RBNZ & BoE interest rate decisions on tap.
For updates on these setups and more throughout the week subscribe to SB Trade Desk and take advantage of the DailyFX Subscriber Discount!
Relevant Data Releases Next Week
Other Setups in Play:
- Webinar: USD Setups in Focus as NFP Clears the Way for Fed Hike
- Dual Jobs Report to Threaten USD/CAD Consolidation Range
- USDJPY Testing Uptrend Resistance- Key NFP Levels
- AUDJPY Rally Approaching Initial Resistance Hurdle
- AUD/NZD Pullback Testing Pivotal Support
---Written by Michael Boutros, Currency Strategist with DailyFX
As we approach the holidays and thus illiquid markets, it's worth reviewing principles that help protect your capital. We call these principles the "Traits of Successful Traders.”
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.