Short term
/
Buy
Trade view / 15 February 2018 at 0:43 GMT

Signs that NZDUSD advance has more room to run

Managing Director / Technical Research Limited
New Zealand
Instrument: NZDUSD
Price target: 0.7493
Market price: 0.7365
Background

The much-anticipated CPI inflation update for the US delivered what many had expected: a higher number that the previous month. Bond yields rose accordingly, but the US dollar failed to follow suit. Something else seems to be going on there (please see today's article from Max McKegg, Why is the US dollar dropping when yields are rising?).

NZDUSD gained, even as local economists fall into line with the Reserve Bank of New Zealand's view that no rate hikes will be needed until mid-2019.

Management and risk description

The Kiwi’s Bullish “impulsive” Elliott Wave sequence from last November’s corrective low of 0.6780 persists (see daily & weekly charts below).

The Kiwi’s correction from its late January peak of .07435 bottomed last week at my 0.7190/0.7160 target area and is rallying nicely.

In the short term, with support now at 0.7345/.7330, we aere looking for the Kiwi to extend its advance toward resistance at 0.7430/0.7450, en route to the 0.7500 level.

Parameters

Entry: Kiwi is today seen as a Buy at 0.73650/0.7350.

Stop: 50% just under 0.7320, initially.

Target: 50% at 0.7431 and 50% at 0.7493

Time horizon: allow several days.

Daily NZDUSD chart (click to expand)
NZDUSD  Daily chart
















Source: ThomsonReuters

Weekly NZDUSD chart (click to expand)


















Source: ThomsonReuters. Create your own charts with SaxoTrader; click here to learn more

For more on forex, click here.

— Edited by Robert Ryan

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Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here
19 February
marran marran
are you still in this max?
19 February
Max McKegg Max McKegg
Absolutely!
20 February
vyacheslav111 vyacheslav111
Hi , Max ! Your opinion on NZDUSD now ?
20 February
Max McKegg Max McKegg
still viewing this decline as corrective
22 February
marran marran
are you looking at re entering this max?
22 February
Max McKegg Max McKegg
via GBP ...

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