Markets Flat Heading Into Key Economic Data
Mon 24th July 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- NZDUSD (Primary Focus Pair)
- NZDCHF (Covered In Video)
- CADJPY (Covered In Video)
Our Interest (pending order)/Open Interest (live position)
| NZDUSD Short | Price | Pips +/- | R/R (Max/Min) |
|---|---|---|---|
| Entry Price | 0.6225 | ||
| Stop Loss (Min) | |||
| Stop Loss (Max) | 0.6300 | -75 pips | |
| Profit 1 | 0.6000 | +225 pips | 1: 3 |
| Profit 2 |
Risk warning: Trading carries a high degree of risk. Read more here.
The markets could be stalling for the next couple of days as we head into the end of the month and holiday season.
During the month of August the markets can experience lower than usual trading volumes as many traders are away from their desks during the holiday period.
This week is the last FOMC, ECB and BOJ monetary policy decisions before the low volume period and could be what market participants are waiting for before picking a direction.
That being said, our live forex strength vs weakness tables continue to flag NZD as a weak currency.
Comparing this on our day traders table to the strongest currency, USD could signal NZDUSD prices to trader lows.
When looking at price we can see it is currently trading below a daily 200 moving average, as well as an hourly 50 moving average.
Prior lows at 0.6620-0.6625 could add as extra confluence for a move lower if it were to be rejected by sellers.
NZDUSD is in an overall larger trading range with key lows forming at 0.6100-0.6000. This would make suitable targets for traders short.
Technical Observations:
- NZD is W1 on our day traders tables.
- NZDUSD is trading below the daily 200 moving average.
- Price could be trading towards key lows at 0.6100.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
