News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
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
Oil - US Crude
Mixed
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
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkzWwW https://t.co/9j004hyzUZ
  • Learning how to trade does not have to feel foreign. Hone your skills and build your confidence with free DailyFX guides today! https://t.co/lnxaQOsgid https://t.co/7myL4vGnt8
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yxE0OmLIP0
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUd00T https://t.co/iSrjZTeWwf
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/WeLInepZiD https://t.co/7B0KI8HehW
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM73cHA https://t.co/vGW5BygTXU
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/xngExEdFdu https://t.co/kqpJ6oGXgt
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/F4dXbUzU3o https://t.co/G0ZWWVtSrZ
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfIZNKr https://t.co/5js6tWk5bY
  • The Euro has regained lost ground against its major counterparts recently. Are further gains in the offing or is this just a short-term countertrend correction? EUR/USD, EUR/JPY, EUR/GBP, EUR/NZD key levels. Get your market update from @DanielGMoss here:https://t.co/Z71MZEIJWC https://t.co/YAr1kN4eKd
NZD/USD Fails at 2016 High Ahead of Labor Report- Bearish Sub 7025

NZD/USD Fails at 2016 High Ahead of Labor Report- Bearish Sub 7025

Michael Boutros, Strategist

Talking Points

  • NZD/USD fails at 2016 high- Outside reversal candle in progress
  • Bearish sub-7025 ahead of New Zealand Labor Report
  • Updated targets & invalidation levels

NZDUSD 30min

NZD/USD Fails at 2016 High Ahead of Labor Report- Bearish Sub 7025

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: Kiwi has reversed sharply at the April high with a break back below the weekly open looking to post an outside day reversal candle. A proposed pitchfork the highs keeps the focus weighted to the short-side ahead of tonight’s New Zealand labor report.

The pair is now testing interim support at 6923 with interim resistance seen at the 50-line (red) / the weekly open at 6974 & 7006. Our near-term bearish invalidation level is set at the median-line confluence just higher at 7025.

We’ll be looking to sell rallies / short-triggers heading into the release with a break lower targeting subsequent support targets at the 61.8% retracement at 6900, the median-line off the highs / 6864/66 backed closely by the October high-day close at 6850. A break below this threshold is needed to mark a larger scale reversal targeting 6806 & 6782.

Keep in mind that although consensus estimates are calling for an up-tick in the headline unemployment rate, the move is expected to be accompanied by a broadening in the labor force participation rate (which typically puts artificial upward pressure on the headline figure). That said, we’ll also want to pay close attention to the wage growth data with average hourly earnings expected to rise by 0.5% in the 1Q, up from 0.2% q/q.

From a trading standpoint I would be looking for a rebound back towards the weekly open for short-entries on the release. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

NZD/USD Fails at 2016 High Ahead of Labor Report- Bearish Sub 7025
  • A summary of the DailyFX Speculative Sentiment Index (SSI)shows traders remain net short the Kiwi - the ratio stands at -1.22 (45% of traders are long- up from 39% previous day)- weak reading
  • Open interest is 13.0% higher than yesterday and 9.7% below its monthly average.
  • The recent decrease in long position suggests the immediate risk for a rebound although a broader flip to net long would reinforce the notion of a reversal lower.

Why and how do we use the SSI in trading? View our video and download the free indicator here

Relevant Data Releases This Week

NZD/USD Fails at 2016 High Ahead of Labor Report- Bearish Sub 7025

Other Setups in Play:

Looking for more trade ideas? Review DailyFX’s Top Trading Opportunity of 2016

---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 and Tuesday, Wednesday & Thursday’s on SB Trade Deskat 12:30 GMT (8:30ET)

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

DISCLOSURES