Forex Market: NZD/USD trading outlook for August 22nd

Friday’s trade (in GMT terms) saw NZD/USD within the range of 0.7241-0.7295. The pair closed at 0.7273, shedding 0.21% compared to Thursdays close. It has been the 11th drop in the past 23 trading days. In weekly terms, NZD/USD added 1.06% to its value during the current week. It has been the 17th gain in the past 33 weeks and also the steepest one since the week ended on July 31st. The major pair has gone up 0.87% 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 22nd).

Correlation with other Majors

Taking into account the business week ended on August 19th 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 GBP/USD (0.9296, or very strong)
NZD/USD to EUR/USD (0.9056, or very strong)
NZD/USD to AUD/USD (0.1134, or weak)
NZD/USD to USD/CAD (-0.7818, or strong)
NZD/USD to USD/CHF (-0.9313, or very strong)
NZD/USD to USD/JPY (-0.9334, or very strong)

1. During the examined period NZD/USD moved strongly in the opposite direction compared to USD/CAD.

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

3. The correlation between NZD/USD and AUD/USD was insignificant.

Daily, Weekly and Monthly Pivot Levels

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

R1 – 0.7278
R2 – 0.7283
R3 (Range Resistance – Sell) – 0.7288
R4 (Long Breakout) – 0.7303
R5 (Breakout Target 1) – 0.7320
R6 (Breakout Target 2) – 0.7327

S1 – 0.7268
S2 – 0.7263
S3 (Range Support – Buy) – 0.7258
S4 (Short Breakout) – 0.7243
S5 (Breakout Target 1) – 0.7226
S6 (Breakout Target 2) – 0.7219

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

Central Pivot Point – 0.7254
R1 – 0.7343
R2 – 0.7413
R3 – 0.7502
R4 – 0.7591

S1 – 0.7184
S2 – 0.7095
S3 – 0.7025
S4 – 0.6955

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