Make or Break for EURNZD - Double Whammy News for NZD
We see a retest of strong structural support just below 1.6300 area - also various key Fib levels.
YoY CPI announcement out almost first thing upon market opening. Expecting no change to YoY inflation as decrease in CPI unlikely due to a pick up in housing market activity last 2 months - a significant over weighted element in the basket of goods measured. Dovish rhetoric in the report should be enough send price up to the pseudo trending area of 1.649xx ~ 1.648xx before retracing to 1.64 area with historical support. Wheeler being frustrated with current NZD levels 'WANTS' a free market drop in NZD ( same with the rest with a brunch a China trade heavy countries ) supports notions of dovish report.
GDT in the following day will likely be a fake out event in price action - not trend changing. Do expect swings in price.
Since I have been long since Thursday and despite RSI not breaking pass 50 - I will keep trade active let it play itself out. Should the retracement happen, I will be looking to add another long @ ~1.64xxx area pending price action.
If chart fails - will be looking to scalp a downward price movement to next key support @ 1.628xx
-Trade your plan and within your limit-
YoY CPI announcement out almost first thing upon market opening. Expecting no change to YoY inflation as decrease in CPI unlikely due to a pick up in housing market activity last 2 months - a significant over weighted element in the basket of goods measured. Dovish rhetoric in the report should be enough send price up to the pseudo trending area of 1.649xx ~ 1.648xx before retracing to 1.64 area with historical support. Wheeler being frustrated with current NZD levels 'WANTS' a free market drop in NZD ( same with the rest with a brunch a China trade heavy countries ) supports notions of dovish report.
GDT in the following day will likely be a fake out event in price action - not trend changing. Do expect swings in price.
Since I have been long since Thursday and despite RSI not breaking pass 50 - I will keep trade active let it play itself out. Should the retracement happen, I will be looking to add another long @ ~1.64xxx area pending price action.
If chart fails - will be looking to scalp a downward price movement to next key support @ 1.628xx
-Trade your plan and within your limit-
Comment:
I am going to adjust TP1 to 1.6489xx - got to that level twice before hitting that trend line again...