Kiwi And Canadian Dollar Might Continue To Trade Lower
NZDUSD might continue to trade lower as sellers seem to be in control in the near term.
Chinese Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) came in at 49.8, compared with the last reading of 50.1.
Chinese official non-manufacturing PMI was also released, which registered a reading of 53.7 whereas the last reading of 54.1.
Australian AIG performance of the Mfg. Index released by the Australian Industry Group came in at 49.0, compared with the last reading of 46.9.
Australian TD Securities Inflation released by The University of Melbourne - Faculty of Economics and Commerce registered a gain of 1.5%, compared with the last gain of 1.5%.
Japanese Nomura/JMMA Manufacturing PMI registered a reading of 52.2 whereas the last reading was of 52.0.
Euro zone manufacturing PMI is one of the major releases lined up during the London session.
The New Zealand dollar was one of the worst performers recently, which declined heavily against the US dollar. The RBNZ interest decision was the main catalyst for the Kiwi dollar sellers, which caused a downside reaction in the NZDUSD pair. The pair broke several important support areas, which signals that sellers are here to stay and more downsides are likely in the near term. There was a support trend line on the weekly chart, which was breached recently and caused a move towards the 0.7200 level. Any correction from the current levels might find resistance around the 0.7350-0.7400 area.
Intraday Support Level – 0.7200
Intraday Resistance Level – 0.7380
Overall, as long as the pair is below the 0.7400 level it might continue trading lower.
A break above the mentioned level could take the pair towards the 0.7600 level.
On the downside, the most important support is around the 0.7200 area. A weekly close below the same might take the pair towards the 0.7000 area.
Another currency which caught the attention of many traders was the Canadian dollar, which traded a lot lower against the US dollar. The USDCAD pair traded above the 1.2700 level and cleared a critical resistance trend line on the weekly chart. However, the weekly RSI is around the extreme levels, which is suggesting that the pair might correct a bit lower from the current levels. There are several support areas on the way down for the pair like 1.2550-00 area. An immediate support can be seen around the 23.6% fib retracement level of the last leg from the 1.0629 low. Any further downside might take the pair towards the broken trend line.
Intraday Support Level – 1.2550
Intraday Resistance Level – 1.2800
Buying dips around the broken trend line look like a good option.
A break below the 1.2500 level would call for more losses moving ahead.
If the USDCAD pair continues to move higher, then the 1.2800 might act as a barrier for the pair. A break above the same might take it towards the 1.2850-1.2900 area where sellers could take a stand.
New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
Taking into account today’s volatile economy GTCM endeavors to provide its clients with a secure trading environment and strong financial services. We aim to establish a strong relationship with our customers by providing them with ease, transparency and accountability on all their account activities
HY Markets is a market leader in providing retail and institutional investors with access to foreign exchange and other capital markets. With HY Markets you can trade forex, metals such as gold and silver, energy products such as US oil and natural gas, commodities, indices as well as stocks, all from a single integrated account.
Ikon Markets are an online trading service provider affiliated to the Ikon Group, an acclaimed global network for online financial trading. Prior to the introduction of our online segment. We, at Ikon, have had many years of experience in providing financial trading services to institutional investors, such as banks, large financial institutions and mutual fund companies.