By IFCMarkets
Better than expected New Zealand trade balance bullish for NZDUSD
On 1-hour timeframe NZDUSD: H1 is in downtrend after retracing higher following a fall to 17-month low. The price is below the 200-period moving average MA(200) which is falling itself.
We believe the bearish momentum will continue after the price breaches below the lower bound of the Donchian channel at 0.6480. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 0.6510. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
New Zealand trade surplus was bigger than expected for December. Will the NZDUSD start rising?
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| MA(200) | Sell | |
| Donchian Channel | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Summary of technical analysis
| Order | Sell |
| Buy stop | Below 0.6480 |
| Stop loss | Above 0.6510 |
Market Analysis provided by IFCMarkets
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