Forex Market: NZD/USD trading outlook for August 8th

Friday’s trade (in GMT terms) saw NZD/USD within the range of 0.7122-0.7221. The pair closed at 0.7143, shedding 0.42% compared to Thursdays close. It has been the 16th drop in the past 31 trading days. The daily low has been the lowest level since July 29th, when a low of 0.7071 was registered. In weekly terms, NZD/USD lost 0.93% of its value during the current week. It has been the 16th drop in the past 31 weeks. The major pair has gone down 0.93% so far during the current month, following a 1.04% advance in July.

No relevant macroeconomic reports and other events, which may influence NZD/USD trading, are scheduled on Monday (August 8th).

Correlation with other Majors

Taking into account the business week ended on August 5th and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

NZD/USD to EUR/USD (0.9208, or very strong)
NZD/USD to GBP/USD (0.6588, or strong)
NZD/USD to AUD/USD (0.0602, or very weak)
NZD/USD to USD/CAD (-0.0943, or very weak)
NZD/USD to USD/JPY (-0.5371, or strong)
NZD/USD to USD/CHF (-0.8636, or very strong)

1. During the examined period NZD/USD moved strongly in one and the same direction with GBP/USD, while moving strongly in the opposite direction compared to USD/JPY.

2. NZD/USD moved almost equally in one and the same direction with EUR/USD during the week, while moving almost equally in the opposite direction compared to USD/CHF.

3. NZD/USD moved almost independently compared to AUD/USD and USD/CAD during the period in question.

Daily, Weekly and Monthly Pivot Levels

By employing the traditional calculation method, the Monday levels of importance for NZD/USD are presented as follows:

Central Pivot Point – 0.7162
R1 – 0.7202
R2 – 0.7261
R3 – 0.7301
R4 – 0.7341

S1 – 0.7103
S2 – 0.7063
S3 – 0.7004
S4 – 0.6945

By using the traditional method of calculation again, the weekly levels of importance for NZD/USD are presented as follows:

Central Pivot Point – 0.7174
R1 – 0.7227
R2 – 0.7310
R3 – 0.7363
R4 – 0.7415

S1 – 0.7091
S2 – 0.7038
S3 – 0.6955
S4 – 0.6871

In monthly terms, for NZD/USD we have the following pivots:

Central Pivot Point – 0.7163
R1 – 0.7373
R2 – 0.7537
R3 – 0.7747
R4 – 0.7958

S1 – 0.6999
S2 – 0.6789
S3 – 0.6625
S4 – 0.6462