Binary Options Analysis – Trade of the Week: NZD/USD – June 23, 2015

United States – Unemployment Claims

On Thursday, at GMT 12:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week, for the first time.

Binary options traders consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.
Last week, the US unemployment claims figure came out at 267,000 and the forecast for this week is currently set at a higher figure, at 271,000.

New Zealand – Trade Balance

At GMT 6:00 a.m., the Statistics New Zealand will release the national trade balance figure, which measures the difference of the value between net import and net export of the country during the previous month.

Since the export of a country is directly correlated to the demand for its currency, a positive trade balance figure indicates that foreigners had to buy more local (NZD) currency in exchange of their domestic  currency. Hence, economists and binary options investors consider the trade balance to be an important indicator of the health of the New Zealand’s economy.

Last month, the trade balance figure of New Zealand came out at $123 million, and this month the forecast is set a much lower figure, at -50 million.

Trade Recommendation for the NZD/USD

Chart NZDUSD, D1, 2015.06.23 05:35 UTC

Since the formation of a bearish outside bar (BEOB) on April 29, the NZD/USD has been trending downwards and formed a well-respected downtrend line in the process.

On June 10, the NZD/USD price on again was rejected around the trend line and formed another bearish outside bar, which broke below the next day, attracting additional bearish momentum in the market.

Yesterday, the NZD/USD price penetrated and closed below the psychologically important support level around 0.6875. This support level has been denying the NZD/USD price from falling further, and a close below this level is signaling that the price would likely stay below 0.6875 for the next few days.

Under the current technical market condition, it is recommended that traders consider placing a PUT order with their binary options brokers for the NZD/USD, as the downturn would likely to continue this week.

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About our Forex and Binary Options Analyst:  Asif Imtiaz

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