NZD/USD – Technical Analysis for Binary Options Brokers
[banner-group name=”banner-analysis-fx”]United States – Producer Price Index
Tomorrow, at GMT 1:30 p.m., the US Department of Labor will release the Producer Price Index (PPI) figure, which measures the changes in the price of products and services bought by manufacturers and service providers in the country.
Since the higher cost of production is usually passed on to the consumers, a rise in the producer price index indicates future inflation. Hence, this data is vital for binary options trading as it is used by binary options investors as a leading indicator of the overall US economy.
Last month, the US month-over-month PPI increased by 0.6%, indicating inflationary pressure on the economy. Currently, the forecast for this month is set at 0.1% increase.
New Zealand – Gross Domestic Product (GDP)
On Wednesday, at GMT 10:45 p.m., the Statistics New Zealand will release the quarter-over-quarter GDP, which measures the changes in the inflation adjusted value of all products and service made in the country over the past quarter.
Since GDP measures the overall productivity in the economy, it acts as a leading indicator of the economic growth in the country. Hence, binary options traders consider the New Zealand’s GDP (q/q) to be an important indicator of the health of the economy.
Last quarter, the New Zealand’s GDP came out at 1.1% growth and the forecast for this quarter is set at a 0.7% growth.
Trade Recommendation for the NZD/USD
Since penetrating below the uptrend line on March 1, the NZD/USD has remained in a strong downtrend and the price has so far fallen by around 210 pips since then. However, last week, the NZD/USD found support near the 0.6900 level.
Currently, the pair is trading above this support and showing signs of a bullish retracement. However, so far, the pair has failed to penetrate above the resistance near 0.6950 level.
As the New Zealand’s GDP is expected to grow over 0.7% over the last quarter, but the US PPI is expected to increase only 0.1% over the past month, we believe it would likely set a bullish fundamental outlook for the NZD/USD this week.
Hence, if the NZD/USD price penetrates above the 0.6950 level, it would likely attract additional bullish momentum in the market.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the NZD/USD with their binary options brokers in Australia as soon as the price closes above the 0.6950 level on the daily timeframe.
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