Daily Forex Market Update: NZD/USD Signaling Long

ABOUT THE AUTHOR: John Putman II is a full-time trader and managing member at FX Analytics , a third-party research provider focused on Exchange rate modeling, economic complexity, genetic programming and distributive computing.

INDEX REVIEW

Early trading saw the Euro, Pound, Kiwi and Dollar indexes all sell off. The Aussie and Swiss remain relatively flat. From a macro perspective I still like the Kiwi for a cyclical move higher. The Aussie, Euro, Pound and Dollar are also signaling cyclical moves higher but their price action is much more neutral which impacts the risk profile. I’d prefer to see them at a more substantial support level than they are right now.

PRE-TRADE ANALYSIS

The Pre-Trade Matrix has 14 regression signals, seven of those have cyclical support, only the NZD/USD isn’t displaying counter momentum as we head into the US Session. That pair is currently signaling long.

TRADE RECAP

The GBP/JPY and the NZD/CAD were closed in the Asian session for a loss of just over half a percent. The NZD never really went anywhere but the Pound did retrace and eventually came to an adjusted support zone, which, by that time, was into negative territory. This morning I’ve entered the long NZD/USD and will let this grind a while and evaluate again this evening.

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