Partner Center Find a Broker

Asian markets were hit by profit-taking as traders brace for top-tier releases coming up this week.

With no major reports scheduled in the next couple of hours, I’m looking at NZD/USD’s charts for trade opportunities.

Before we check out the setup, you might want to read the top headlines during today’s Asian session trading:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Spain’s unemployment rate at 7:00 am GMT
  • U.K.’s CBI realized sales at 10:00 am GMT

What to Watch: NZD/USD

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

NZD/USD fell by as much as 50 pips earlier today as a lack of fresh catalysts inspired risk-takers to take some profits off before this week’s closely watched economic reports.

Of course, it also didn’t help high-yielding currencies that the safe-haven gold made new highs and attracted momentum traders.

With no major data on the docket, I’m thinking risk sentiment will also influence today’s London session trends.

I’m looking at NZD/USD, which is hanging out at a mid-channel support that’s also near the 100 SMA on the 1-hour time frame.

Its current level is a good place to buy since NZD/USD has already used up its average daily volatility and risk-takers could eventually go back to extending the pair’s uptrend.

If the profit-taking vibe extends all the way to the U.S. session, however, then NZD/USD could extend its pullback to the 200 SMA closer to the ascending channel support.